Why is a hammer candle considered a bullish signal in the world of cryptocurrencies?

3 answers

• Nov 24, 2021 · 3 years ago
  A hammer candle is a type of candlestick pattern that is formed when the price of a cryptocurrency opens, trades lower during the session, but then rallies to close near its opening price. This pattern is considered a bullish signal because it indicates that buyers were able to push the price back up after a period of selling pressure. It suggests that the bulls are gaining control and that a potential reversal or uptrend may be imminent.
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• Nov 24, 2021 · 3 years ago
  In the world of cryptocurrencies, a hammer candle is seen as a bullish signal because it represents a rejection of lower prices. When the price of a cryptocurrency drops significantly during a trading session but then recovers and closes near its opening price, it shows that buyers are stepping in to support the price. This can be interpreted as a sign of strength and a potential reversal in the downtrend.
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• Nov 24, 2021 · 3 years ago
  According to BYDFi, a leading cryptocurrency exchange, a hammer candle is considered a bullish signal because it indicates that there is buying interest at lower price levels. This suggests that traders and investors believe the price has reached a point of value and are willing to buy, potentially driving the price higher. It is important to note that the significance of a hammer candle should be confirmed with other technical indicators and analysis before making trading decisions.
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