Alright I’m honestly so exhausted but let’s get started with the hammer candle intro as promised
1- Hammer candle in my opinion- are the MOST significant candle you can have on any intra chart. Usually, you'll see a hammer candle after a consolidation period or a dowtrend.
2- What else does a hammer candle signify? Usually a hammer candle means that the indecision period OR the short sellers are now on the edge because they know the MOMENTUM could possibly shift the other way.
3- Example from a hot stock can be $SNDL
4- Should I just rely on the hammer candle for my entries? Absolutely not- BUT if we know that hammer candles comes after a consolidation period or a downtrend, we know what our risk is. That's what trading is about what is your risk and what's your reward. REWARD MUST BE GREATER
Here's one more example $TLRY same thing like I've said before. TLRY had been consolidating in this range for a while. What happened after the hammer candle? Start of a new uptrend.
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