medium · Volume Price Analysis climactic

What is the primary risk of acting on a single hammer candle during a Buying Climax?

  1. Hammer candles printed on high volume are actually reliable bearish reversal signals.
  2. The candle in question might actually turn out to be a shooting star pattern in disguise.
  3. The momentum of the decline may carry the price lower before the insiders are finished.
  4. The volume figure itself might be entirely 'fake' or unreliable if it is exchange-reported data.

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