The candle that changed my life
Tadawul All Shares Index TASI.SA | 11268.38 | -0.07% |
S&P 500 index SPX | 6582.69 | +0.11% |
The candle that changed my life
When I first started with technical analysis, I would switch between indicators, get lost in the details, and sometimes get lost in the recommendations…
But what completely changed my decisions was something very simple:
One candle...its name is "hammer".
🎓 What is a hammer candle?
• A Japanese candlestick that often forms at the end of a downtrend.
• It has a small body at the top and a long lower tail that represents buying pressure.
• Indicates that sellers pushed the price down, but buyers came back and took control before the close.
From an academic perspective, it is considered a bullish reversal signal, but it needs confirmation on the next candle.
🧠 When did you actually change my life?
In a stock I was following after a sharp drop…
All indications say: Don't enter.
But a perfect hammer candle appeared:
• Very long tail
• Above average trading volume
• It coincides with a strong support level.
At that time, I decided to apply what I had learned literally:
I entered with a small percentage... and indeed the stock started to rebound, and every day it gave a higher close than the day before.
💡 What did you learn from it?
1. Candles speak, but you have to learn to listen.
2. Simplicity in analysis sometimes outweighs complexity.
3. One candle can change a decision, and a decision can change your entire account.
✍️ Conclusion:
Hummer is not just a candle...
The Hammer was the first moment I trusted myself as an analyst, and relied on my own eyes instead of relying on others.
✒️ Written by:
Abdullah Al-Thaqafi "Abu Rasil"
Technical Trainer and Analyst - Consultant at Nosah Financial Company
And a knowledge partner for the Sahm Capital platform
@Abu_RaaSeeL22
Important Notes and Hazard Warnings
The author's experiences and opinions expressed in this article are solely his personal perspective within the context of a particular market environment. They are intended for educational and awareness purposes and do not constitute investment advice. We solemnly emphasize that such successful trading cases are rare exceptions in the markets, not the general rule. Past successes do not guarantee future performance.
Financial markets are fraught with uncertainty, and all investment decisions involve significant risk. Statistics show that the vast majority of individual investors experience trading losses, especially when attempting to capture short-term market movements. Furthermore, relying on a single technical indicator to make trading decisions can lead to a high degree of uncertainty and potential losses.
We strongly advise you to:
- Do independent and thorough research, and don't make your decisions based solely on other people's success stories.
- Develop and adhere to a strict risk management strategy, including setting stop-loss points and allocating capital rationally.
- Assess your personal risk tolerance and ensure that you only invest money that you can afford to lose.
The essence of investing is rationality and discipline, not just individual "bright moments." Therefore, please always exercise caution and pay attention to the market.
