Inverted Hammer Japanese Candlestick The Inverted Hammer candlestick is a bullish reversal candlestick pattern. It occurs at the bottom of a Bitcoin downward trend. Inverted hammer candlestick occurs at the bottom of a downtrend and indicates the possibility of reversal of the downward Bitcoin price trend.
Technical Analysis of Inverted Hammer Candlestick A buy signal generated using the inverted hammer candlestick pattern is confirmed when another candlestick is formed and this new candlestick closes above the neckline, this is the opening of the candlestick on the left side of this hammer candlestick as shown above. The neckline in this case is a resistance level.
If the candlestick formed next to the hammer candlestick does not close above the neck line, then as a trader you wait to see if the subsequent candlestick closes above the neck line. Only when a candlestick that closes above the neckline is formed is when this bullish reversal pattern is confirmed.
Stop loss orders for the buy trade that has been opened should be placed a few pips below the lowest price on the recent low.
An inverted hammer candlestick is named so because it signifies that the market price is hammering out a bottom.
Then all the confirmation for the bull market for crypto!
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