I use Japanese Candlesticks in my trade methodolgy and Hammers (its sub-groups) are one of my favorites.
With that said, candlestick analysis should not be used alone and I prefer to use them as confirmation signals to what I already understand about the price action as a price action only trader (no indicators).
I'm hoping this thread becomes a continuation of a prior Hammer thread called Tradin Hammers.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=18381
However, if you don't believe in the merits of using Hammer patterns or think they don't work...
Instead of just showing up and saying Hammers don't work (admitting you failed at using them when others have not)...
Please post a recent chart of a failed Hammer pattern.
Hopefully I or someone else that uses Hammers can reply with helpful insights if we see something wrong with that particular Hammer pattern in your chart example.
Yet, if your chart is stock chart...I myself will not provide any analysis of such because I do not trade stocks (equities) nor do I have an understanding of its price action mainly because I'm unable to watch its price action in realtime or I don't have any live-recordings of its price action.
However, that doesn't imply someone else cannot reply to your Hammer discussion in relationship to a particular stock (equity).
Simply, one of the keys to using Hammer patterns properly is to understand the price action prior to any trade signals.
Further, if you ask anyone that's participating in this thread about Hammers in general...please post a chart example of a particular pattern in question.
In addition, you can do a keyword search here at ET on any past posts that I've discussed Hammer patterns via typing either NihabaAshi Hammers or NihabaAshi Hammer in the below ET search menu...
http://www.elitetrader.com/vb/search.php?s=
I make it easier for someone to research my past comments on anything via intentionally typing my name at the end of each message post.
Once again...I do not recommend using candlestick analysis all by itself and it should be only used as a confirmation to what you already know or believe is occurring in the the current price action.
Something else, if your going to learn about Hammers or any other type of price action pattern via hindsight charts alone...
This is very difficult and can give some traders a false sense of understanding the price action that leads into the Hammer pattern and possibly sabotaging the ability to react to Hammers in realtime.
Instead...do live-recordings of your trading day that also captures the live action of a Hammer pattern formation and then use your hindsight charts as a reference point to those live-recordings.
I use the software called Camtasia Studio and I believe their product called Snagit also does live-recordings.
http://www.techsmith.com
It's an excellent way of understanding the price action and learing how you interact with the market in realtime via any particular trading instrument.
Other than that...
Last of all, this thread is for all traders (beginners, some experience, advance) using the Japanese Candlestick Hammer pattern as a trading tool in their trade methodology...
All perspectives about such are welcome especially when accompany with chart examples.
NihabaAshi
With that said, candlestick analysis should not be used alone and I prefer to use them as confirmation signals to what I already understand about the price action as a price action only trader (no indicators).
I'm hoping this thread becomes a continuation of a prior Hammer thread called Tradin Hammers.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=18381
However, if you don't believe in the merits of using Hammer patterns or think they don't work...
Instead of just showing up and saying Hammers don't work (admitting you failed at using them when others have not)...
Please post a recent chart of a failed Hammer pattern.
Hopefully I or someone else that uses Hammers can reply with helpful insights if we see something wrong with that particular Hammer pattern in your chart example.
Yet, if your chart is stock chart...I myself will not provide any analysis of such because I do not trade stocks (equities) nor do I have an understanding of its price action mainly because I'm unable to watch its price action in realtime or I don't have any live-recordings of its price action.
However, that doesn't imply someone else cannot reply to your Hammer discussion in relationship to a particular stock (equity).
Simply, one of the keys to using Hammer patterns properly is to understand the price action prior to any trade signals.
Further, if you ask anyone that's participating in this thread about Hammers in general...please post a chart example of a particular pattern in question.
In addition, you can do a keyword search here at ET on any past posts that I've discussed Hammer patterns via typing either NihabaAshi Hammers or NihabaAshi Hammer in the below ET search menu...
http://www.elitetrader.com/vb/search.php?s=
I make it easier for someone to research my past comments on anything via intentionally typing my name at the end of each message post.
Once again...I do not recommend using candlestick analysis all by itself and it should be only used as a confirmation to what you already know or believe is occurring in the the current price action.
Something else, if your going to learn about Hammers or any other type of price action pattern via hindsight charts alone...
This is very difficult and can give some traders a false sense of understanding the price action that leads into the Hammer pattern and possibly sabotaging the ability to react to Hammers in realtime.
Instead...do live-recordings of your trading day that also captures the live action of a Hammer pattern formation and then use your hindsight charts as a reference point to those live-recordings.
I use the software called Camtasia Studio and I believe their product called Snagit also does live-recordings.
http://www.techsmith.com
It's an excellent way of understanding the price action and learing how you interact with the market in realtime via any particular trading instrument.
Other than that...
Last of all, this thread is for all traders (beginners, some experience, advance) using the Japanese Candlestick Hammer pattern as a trading tool in their trade methodology...
All perspectives about such are welcome especially when accompany with chart examples.
NihabaAshi
