Detailed explanation of reversal candlesticks: hammer and hanging line

This type of reversal candlestick can be bullish or bearish. If it appears in a downward trend, it is a signal that the downward trend is about to end, called a hammer line, which means "the market is hammering the bottom with a hammer"; it appears in an upward market, indicating that the market's upward movement may have ended, called a hanging line, and its shape is also like a dead person hanging on the gallows, indicating that the market should not be blindly optimistic.

Morphological characteristics:

1. The highest price and closing price of the real body are both at the top of the candle body, and the opening price is not far below the highest price. The lower shadow is obviously too long, and the color of the real body (red, green) does not matter.

2. The hammer line and the hanging line should not have an upper shadow, but it is allowed to have one, and it must be very short. It is generally believed that the lower shadow should be 2-4 times the real body.

3. In the two, the longer the lower shadow, the shorter the upper shadow, and the smaller the real body, the more effective this type of candlestick is.

Hanging line: After repeated long positions, the power of buyers and sellers reaches a balance. Within a trading day, the bulls try to push the price up. After hitting a new high for the day, they have no intention of maintaining the high position. The price falls sharply. The seller's power is unstoppable. The suppressed energy of the sellers for many days is released instantly. The price falls sharply, but the closing price of the day is still at a high position, close to the highest price, and the real part is quite small. Hanging line, generally in an upward market, indicates that the market may have reached its peak, and the negative line is better than the positive line.

Trading strategy:

1. First, it should be judged whether it is reliable and whether it is a reversal pattern. It can be analyzed according to the above morphological characteristics. It is also necessary to see whether the trend on the second day cooperates with the reversal. Don't blindly build a heavy position to enter the market. You can build a light position (such as 1/10 position or smaller) on the same day to test, and pay attention to setting a stop loss.

2. The establishment of the bearish signal of the hanging line should also be cautious to see whether it is at the top of the market or a relay indicator. If the downward gap between the hanging man's body and the next day's opening price is larger, the possibility of forming a market top is greater.

3. After the top and bottom are formed, there may be a pullback in the future market, that is, the price will test the bottom of the hammer line again. As long as it does not break the lowest level, the bottoming pattern of the hammer line is still valid. #美国大选如何影响加密产业？ #美国6月CPI大幅降温 #币安7周年