#velasjaponesas. #LearningTogether

The hammer pattern

The Hammer candlestick pattern is a bullish reversal pattern that indicates a possible change in price direction. It typically forms at the end of a downtrend and signals the possibility of an uptrend beginning. It is called "Hammer" because of its shape, which resembles a hammer with a long handle and a small head.
👀 What the Pattern Looks Like:
The Hammer pattern is formed by a single candle, which has the following characteristics:
Small Body: The body of the candle, which is the difference between the opening and closing prices, should be small. This body can be red (bearish) or green (bullish).
Long Lower Shadow: The most distinctive feature of a Hammer is its long lower shadow (wick). This shadow should be at least twice the length of the real body.
Little or No Top Shadow: Ideally, a Hammer should have little or no top shadow. If there is a little top shadow, it can still be considered a Hammer, but the absence of a top shadow is more ideal.
Position within a Trend: To be considered a Hammer, it must form after a downtrend. If the same shape appears after an uptrend, it is called "Hanging Man" and may be bearish.

For people who still don't know what Japanese candles mean.

Japanese candles are a graphical way to represent how the price of something (like a cryptocurrency, stock, etc.) moves over a period of time. Each candle gives you four key pieces of information:

1. Open: The price at the beginning of the period.

2. Close: The price at the end of the period.

3. High: The highest price reached during that time.

4. Low: The lowest price reached.

The candle has two parts:

Body: The thick part. It represents the difference between the open and the close. If the close is higher than the open, the body is usually green (up). If the close is lower, it is usually red (down).

Wicks (or shadows): The thin lines above and below the body. They show how far the price reached (highs and lows).

In summary, a candle tells you how the price moved over a period, and by looking at them together, you can notice patterns that help you predict future movements. It's like reading the "mood" of the market!
#TopCoinsSeptember #velasjaponesas.

I show you some #patrones of #velasjaponesas.

1. **Hammer**: This candle has a short body at the top with a long wick down, suggesting a possible change to an uptrend if it is found after a downtrend.

2. **Hanging Man**: It is identical to the hammer in shape, but is found at the top of an uptrend, and can indicate a change to a downtrend.

3. **Bullish Engulfing**: It is formed when a small red candle is followed by a large green one that completely covers the body of the previous red candle, indicating a possible change to an uptrend.

4. **Bearish Engulfing**: This pattern occurs when a small green candle is followed by a large red candle that completely engulfs the body of the previous green candle, signaling a possible change to a bearish trend.

5. **Shooting Star**: It is characterized by a short body at the bottom with a long wick up. If it appears after an uptrend, it could indicate a change to a downtrend.