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Candlesticks: Hammer and hanging man

Candlestick formations consisting of a single-session can be powerful signals of reversal that is just about to occur. The most popular among these are exceptionally long or exceptionally short candlesticks. Long white sessions or dojis (sessions with little or no real body) signal a bullish reversal at the end of a downtrend. And long black sessions or dojis signal a bearish reversal at the end of an uptrend. This “rule” is the basic observation of candlesticks. Any session that is exceptionall

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