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Trading Bitcoin Interpret/Analyze Hammer Crypto Candle Bullish or Bearish

Hammer candle setup is a potentially bullish candle set-up which occurs and forms during a bitcoin downwards trend. It's named so because the btcusd market is hammering out a market bottom.

A hammer btcusd crypto candle pattern has:

  • A small body
  • The body is at the top
  • The lower shadow is two or three times length of real body.
  • Has no upper shadow or very small upper shadow if present.
  • The color of the body isn't important

Hammer Candles on BTCUSD: Bullish or Bearish? - Trade Hammer Patterns in Crypto

Analyze Hammer Candles in Crypto: Bullish or Bearish Signals

Analysis of the Hammer BTCUSD Candles Pattern

The bullish buy signal confirms when a candle closes above the open of the hammer candle to its left.

Stoploss orders should be set a little bit below the lowest point of the hammer candle after a trade is started using this pattern.

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