1. The price has been respecting a weekly trendline for many months. This trendline acts like a support line where buyers usually come in.
2. Recently, the price fell towards this same trendline and created a hammer candle. A hammer at support often shows that sellers pushed the price down, but buyers stepped in strongly and pulled it back up. This is usually a sign of buying interest.
3. The hammer candle formed exactly near the support zone and the Fibonacci 61.8 percent area. This area often works as a strong reversal point.
4. When the hammer candle formed, the volume was very high. Huge volume at support means big players were actively buying at lower levels.
5. The price is still inside a wide range between recent highs and lows. It has not broken out yet, but the support reaction is positive.
In simple words, the chart is showing a strong bounce setup from support with a hammer candle and high volume. This is a sign that buyers may try to take control again as long as the price stays above the trendline and support area.
2. Recently, the price fell towards this same trendline and created a hammer candle. A hammer at support often shows that sellers pushed the price down, but buyers stepped in strongly and pulled it back up. This is usually a sign of buying interest.
3. The hammer candle formed exactly near the support zone and the Fibonacci 61.8 percent area. This area often works as a strong reversal point.
4. When the hammer candle formed, the volume was very high. Huge volume at support means big players were actively buying at lower levels.
5. The price is still inside a wide range between recent highs and lows. It has not broken out yet, but the support reaction is positive.
In simple words, the chart is showing a strong bounce setup from support with a hammer candle and high volume. This is a sign that buyers may try to take control again as long as the price stays above the trendline and support area.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.