KuCoin is the most supportive and beginner-friendly crypto exchange. The robust platform and new features help KuCoin achieve a new level of success. KuCoin success always keeps it among the top crypto trading platforms of the world. It will be difficult for you to find such a wonderful exchange throughout the globe. The trading indicators and patterns KuCoin support on their site help in the most successful way. The traders take maximum advantage of a wide range of trading patterns. This post also explains an informative guide from KuCoin about hammer candlestick patterns.
It is a pattern that creates when security trade is a bit lower than its opening but near still exists near the point of opening. In this case, the pattern formed is called a hammer candlestick. The lower part is somewhat twice the whole body of the candlestick. These shadows indicate the high and low prices, while the body indicates the price changes. Hammers are most effective after the two or three declining states. The “T” symbol indicates a hammer candle and defines its potential. You can easily observe this pattern daily, weekly, and monthly.
Difference Between Dogi and Hammer Candlestick:
People are usually confused about the patterns of Dogi and Hammer candlesticks. However, Dogi is another form of candlestick with a small body. It isn’t easy to decide based on Dogi because it shows both up and down shadows. Dogi may help to find the trend of continuous behavior and price reversal in different time frames. After a price decline signal show upside reversal which seems more effective for a bullish market trend. We all have to consider the thing that there is no perfect pattern exists in the trading world. We always use more than one pattern for confirmation alongside indicators.
Limitations of Hammer Candlestick:
There is no 100% confirmation that the price is moving upward after we take confirmation from the hammer candlestick. Remember, it is not always an ideal place to take entry and put a maximum amount of your asset in it. Using a hammer candle stick, you must manage your risk properly and take profits at certain points. Hammer also does not provide a price target, so it’s better to use it with other patterns and always keep your eye on other technical analyses of the market. You can also better estimate it via fundamental analysis.
You can find a big list of pairs on KuCoin for trading, including BTC/USDT, ETH/USDT, ADA/USDT, and several others. Similarly, the live market BTC, ETH, ADA, ALGO price, and other information are also present on the KuCoin exchange. Different types of trading, including spot, future, fiat, and P2P, are supported by the KuCoin platform. Not just only these trading options but also various indicators with many patterns are available on the KuCoin site. Because of that reason, we also discussed one of the patterns named Hammer candlestick in this post. We hope you learn a lot about this pattern in this article.