My first thought would be, what were the perimeters for these results? How far did the trade go for it to not work? I myself don't follow the candle indicator, but i do pay attention to the open and close price on bars. If my bar looked like a hanging man and it pulled back from a low or support, by reflex i would be looking for a volume increase. Same for peaks-Plateau's.
This is such a BS candlestick pattern
- Thread starter Maverick1
- Start date
My first thought would be, what were the perimeters for these results? How far did the trade go for it to not work? I myself don't follow the candle indicator, but i do pay attention to the open and close price on bars. If my bar looked like a hanging man and it pulled back from a low or support, by reflex i would be looking for a volume increase. Same for peaks-Plateau's.
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AS if that candle pattern means somethiing/LOL/LOL
Of course if those were/are yearly candles in a bear market/stock market..... Could mean something/ to tiighten up stops. Spell checker not use, not a prediction.From back when ET used to be a little more useful...
https://www.elitetrader.com/et/threads/trading-hammers-revisited.52880/
hope it helps someone out there
https://www.elitetrader.com/et/threads/trading-hammers-revisited.52880/
hope it helps someone out there
Since this has turned into a bash on Nison, I will say I too question some of Steve Nison’s stuff. But I feel one should study what they've learned and see what works, or how to apply it. Others have mentioned using context around the candlestick/candle stick pattern and I feel this helps. Candle recognition is only good as part of a greater strategy, Nison mentions this as well.
I agree the hangman isn’t significant to me but studying Nison’s patterns what catches my eye are the hammer/shooting star, bullish/bearish engulfing, morning/evening star patterns. Technically all these patterns I mentioned are practically the same, just takes 2-3 bars to form that pattern vs 1 but if you meshed the two together and the three together you’d almost have a hammer/shooting star on every single one. I’m not as fond on his dark cloud covers, Hirami’s etc. for signals.
And for those that joke about the 50% I understand it seems goofy, but by using the patterns to find higher risk rewards trades, not always increased percentages it’s still helpful. Nison really mentions trade only 2/1 R/R. Take 2/1 R/R with 50% W/L and you’d have a decent system. If there were a casino game offering the customer 2/1 on a game 50/50 chance I’d sure be all over that game, but you’d never see that game.
I agree the hangman isn’t significant to me but studying Nison’s patterns what catches my eye are the hammer/shooting star, bullish/bearish engulfing, morning/evening star patterns. Technically all these patterns I mentioned are practically the same, just takes 2-3 bars to form that pattern vs 1 but if you meshed the two together and the three together you’d almost have a hammer/shooting star on every single one. I’m not as fond on his dark cloud covers, Hirami’s etc. for signals.
And for those that joke about the 50% I understand it seems goofy, but by using the patterns to find higher risk rewards trades, not always increased percentages it’s still helpful. Nison really mentions trade only 2/1 R/R. Take 2/1 R/R with 50% W/L and you’d have a decent system. If there were a casino game offering the customer 2/1 on a game 50/50 chance I’d sure be all over that game, but you’d never see that game.
Uh. . .the underlying in question appears to be in an uptrend. Is that the right answer? Do I get a participation trophy?
You probably could test a failed hammer and have a good trade/ system. Just guessing as usual but if a market trades from 25 to 55 after a (long) run down then slowly trades back down to break 25, I'm pretty sure I'm a seller. YoudY have to think that all of those who bought the hammer would be trapped and about to get kicked in the teeth.