Hey guys! Very new to trading and was going through the School section of this website when I got a bit confused with Hammer/Hanging Man patterns.
The school mentioned 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.” Why would buyers want the overcome low prices? Wouldn’t a buyer want to buy a currency for a lower price?
Similarly with the Inverted Hammer, the school stated that “The inverted hammer occurs when price has been falling suggests the possibility of a reversal. Its long upper shadow shows that buyers tried to bid the price higher. However, sellers saw what the buyers were doing, said “Oh heck no!” and attempted to push the price back down.” This also feels very counterintuitive to me. Why would a seller try to overcome those higher prices? Wouldn’t they want to sell currencies for higher?
Sorry they’re silly questions!
Thanks im advance!