Hey guys! How’s it going! Brand new to trading and was going through the school section on babypips when I got a bit confused by hammer/hanging man trends.
So a hammer/hanging man trend has a long lower shadow. The school explains that ‘The long lower shadow indicates that sellers pushed prices lower, but buyers were able to overcome this selling pressure and closed near the open.’
I’m a bit confused by this. Why would a buyer want to overcome lower prices when he/she would want to buy at lower prices? Why would he/she want to overcome the selling pressure?
Dont think a single buyer want to overcome the selling pressure All buyers are in balance with the sellers on the end of the day. Buyers buy because they think prices will go up more or it is still cheap to buy
