Lately especially since we have become bear, one of the best Short entries are hammer candles. Now of course hammer candles have a good chance of causing price to go up, so it depends on the circumstance and ESPECIALLY the candle before it, and where the candle is.
In this case, we had a test of support, a failed rally, and a 2nd test of support that caused the hammer.
This is a classic trap, and told me that MM wanted me to buy since support failed to hold already once.
In the previous weeks Bull era, likewise, it became very profitable Longing Shooting Stars. Now we see the opposite happen. In bear, it's not recommended to Long Shooting Stars anymore but it CAN be profitable sometimes again depending on the circumstance.
But now hammers are good signals for short in certain circumstances.
In this case, we had a test of support, a failed rally, and a 2nd test of support that caused the hammer.
This is a classic trap, and told me that MM wanted me to buy since support failed to hold already once.
In the previous weeks Bull era, likewise, it became very profitable Longing Shooting Stars. Now we see the opposite happen. In bear, it's not recommended to Long Shooting Stars anymore but it CAN be profitable sometimes again depending on the circumstance.
But now hammers are good signals for short in certain circumstances.