K Line Academy Pattern Teaching: Hammer Candlestick and Hanging Man

Both Hammer Candlestick and Hanging Man belong to reversal K-line patterns. In terms of a single K-line shape, the Hammer Candlestick and Hanging Man are essentially the same, with the biggest difference being the prior trend. Because of this difference in trend, the Hammer Candlestick appears at the bottom, while the Hanging Man appears at the top. The Hammer Candlestick has the following characteristics:

(1) Appears in a downtrend.

(2) The lower shadow is relatively long, the upper shadow is either non-existent or very short, and the lower shadow is at least twice the body.

(3) The body can be either bullish or bearish.

When a Hammer shape appears during a downtrend, it indicates that there is significant support below, the previous decline has lost momentum, and there is a clear demand for a pullback.

When a Hammer shape appears during a downtrend, it suggests that the market may shift from a downward trend to an upward trend or enter a phase of sideways consolidation. If one holds a short position at this time, it may be worth considering closing the position. #比特币打破感恩节魔咒