Bearish Hammer – EMA Confirmation Setup🧭 Overview
The Bearish Hammer pattern appears near the top of an upward move and signals potential buyer exhaustion. When combined with EMA High–Low band alignment, it provides a structured approach to identify early downside pressure.
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📘 Concept
A Bearish Hammer forms after an advance, where price attempts to move higher but faces strong rejection. The long upper wick reflects selling pressure entering the market.
To increase reliability, this setup is combined with the EMA High–Low band:
• The hammer should form above the EMA band.
• The EMA band should not touch the hammer body.
This alignment strengthens bearish bias within the broader structure.
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📊 Chart Explanation
1️⃣ A Bearish Hammer forms near the top of the move, indicating buyer exhaustion.
2️⃣ The candle appears above the EMA High–Low band, supporting bearish alignment.
3️⃣ The hammer’s low acts as the validation line for downside confirmation.
4️⃣ A close below the validation line confirms weakness.
5️⃣ A break above the hammer high acts as the devalidation level and cancels the setup.
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📝 Summary
Bearish Hammer near highs signals early selling pressure.
EMA band alignment improves structure clarity.
Close below the hammer low confirms the setup.
Break above hammer high invalidates the pattern.
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⚠️ Disclaimer
📘 For educational purposes only.
🙅 Not SEBI registered.
❌ Not a buy/sell recommendation.
🧠 Purely a learning resource.
📊 Not Financial Advice.
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