Hammer and Inverted hammer
- Thread starter moolah
- Start date
Candlestick Patterns Hammer, Hanging Man, Inverted Hammer
https://www.elitetrader.com/et/thre...st-right-here-baby.335635/page-5#post-4925440
Can you spot any support levels, trendlines, moving averages, fib levels, round number price level AT one of the ohlc levels of the candles? That can be meaningful. your mileage may vary.
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Post a chart example because there's different types of Hammer that's followed by different type of Inverted Hammer.
It becomes more diverse due to the market context.
wrbtrader
Where there are 2 or 3 consecutive "star" days after a decline (hammer being one of the star candles), it signals "indecision about continuation of the down move and likely upside reversal."
Vice versa for star days after an upswing.
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Typically, yes but he/she did not post a chart of what he's talking about.
Thus, some consecutive Hammer lines can actually be bullish or bearish after a decline depending upon the market context involving the price decline. Thus, its a possibility its a "bearish continuation" pattern of the decline.
wrbtrader
Stock chart (plus name of stock) please that highlights what you consider to be downtrend, hammer and then inverted hammer.
wrbtrader
Hi Moolah,
Here is an interesting past ET thread on this topic.
https://www.elitetrader.com/et/threads/trading-hammers-revisited.52880/
i loves me some hammers@S&R wick2xbody+.
Blood simple, easier than engulfing@S&R but same context works for both.
Both situations comprise a proper base suitable for spicing with additional methods, but that can be more effort than is warranted. Trader can get so involved lookin at all that other crap that a fantastico hammer@sr just marches right on by bigger than james brown in a cape.
take a little bitta Setup and Trigger:
https://www.elitetrader.com/et/thre...t-right-here-baby.335635/page-10#post-5014575
with a little bitta Exits:
https://www.elitetrader.com/et/thre...t-right-here-baby.335635/page-13#post-5073703
and a little bitta Stats:
run stats on 100 setups and triggers and who knows, maybe ms market will come up offa some a that cashage material.
Stranger things have happened.
ymmv
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