The following is also a valid Bullish whilte hammer pattern
Trading Hammers (revisited)
- Thread starter NihabaAshi
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Hi Weekly Trader,
Thanks for the charts and here's why I don't consider your above charts to be a valid bullish white hammer pattern via as explained at the below links.
First of all, there was several discussions about some of the rules prior to me getting into the habit of using the * next to a rule to help identify its a rule.
Therefore, I understand why you may have missed reading this particular rule I'm about to discuss again.
The link below was just a general discussion about what I'm measuring the long lower shadow of the White Hammer Line against in the prior intervals.
It's in that link I mention measuring the long lower shadow against the following:
* Lower shadow of the White Hammer Line being compared to the lower shadows of the prior three intervals.
* Lower shadow of the White Hammer Line being compared to the bodies of the prior three intervals.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=52880&perpage=1&pagenumber=78
Next...later in the thread at the below link...I discussed more detailed about the relationship between the long lower shadow of the White Hammer Line with the bodies of the prior intervals via saying the following...
I'm comparing the long lower shadow to the bodies and lower shadows of the prior intervals except the dark WRB
http://www.elitetrader.com/vb/showthread.php?s=&threadid=52880&perpage=1&pagenumber=94
Later in the thread the trader name sunnyskies said the following...
LS of white hammer should be greater than bodies of 3 prior candles.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=52880&perpage=1&pagenumber=135
To be precise...here's the exact rule the above links are talking about...
* Long Lower Shadow of the White Hammer Line must have more depth (longer) than the bodies of the prior three intervals.
However, if there's a WRB (dark or white) among the prior three intervals...
Do not compare the Long Lower Shadow of the White Hammer Line to the WRB body.
Instead, the Long Lower Shadow of the White Hammer Line must have more depth (longer) than the bodies of the three intervals that occurred before the WRB...
Along with the Long Lower Shadow of the White Hammer Line having more depth (longer) than the bodies of any intervals between it and the WRB.
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Weekly Trader, with the above info...
You should be able to now see why your chart examples are not a valid bullish white hammer patterns via what I'm discussing in this thread.
However, that doesn't imply there's not a bullish pattern present in the price action area your pointing to in your charts...
Just that there's not any bullish white hammer patterns.
Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
Ok the charts I posted are not valid bullish white hammer patterns.
I have a question...
Should the low of the white hammer line be < the lows of the intervals before the WRB (if one of the 3 intervals before the white hammer line happens to be a WRB)?
I have a question...
Should the low of the white hammer line be < the lows of the intervals before the WRB (if one of the 3 intervals before the white hammer line happens to be a WRB)?
Hi Weekly Trader,
Yes about the low of White Hammer Lower shadow < Lows of the three intervals prior to the WRB...
If a WRB is present.
Yes about the length (depth) of the White Hammer Low > length (depth) of the lows of the three intervals prior to the WRB...
If a WRB is present.
Yes about the length (depth) of the White Hammer Lower shadow > length (depth) of the bodies of the three intervals prior to the WRB...
If a WRB is present.
Also, the White Hammer lower shadow must be measured (as the above) against any intervals between the WRB and the white hammer line...
If a WRB is present.
Today's Eurex DAX futures via its 15min chart is a good example of such type of price action...see attachment.
Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
ok thanks
Here is another chart...
Assuming the length of the top shadow of the white hammer line < length of body, that pattern would not qualify yet as a bullish white hammer pattern because the length of the long lower shadow of the white hammer line < the lower shadow of the 1st of the 3 intervals before the dark WRB.
Here is another chart...
Assuming the length of the top shadow of the white hammer line < length of body, that pattern would not qualify yet as a bullish white hammer pattern because the length of the long lower shadow of the white hammer line < the lower shadow of the 1st of the 3 intervals before the dark WRB.
Correct.
It's not valid because the length (depth) of the White Hammer lower shadow is < length (depth) of the lower shadow of the 1st of those three intervals before the Dark WRB regardless to the fact that the low of the White Hammer Line is lower than the lows of the three intervals prior to the WRB.
Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
This one however qualifies as a bullish white hammer patterm (assuming the long lower shadow of the white hammer line is longer than the body of the interval just before the dark WRB)
Hi Weekly Trader,
What chart is that because the price action (very little of it) looks odd in Jan of 2006 and prior to 2006.
It's very thin.
Regardless...there's a particular rule that's not yet discussed.
On your chart...take a closer look at the relationship of the WRB and the prior three intervals.
Compare that to what you see on my charts that have a WRB among the price action within three intervals of the White Hammer Line.
(Note: WRB is not required to be among the three intervals prior to the White Hammer Line.)
Tell me what you see as in the differences between that particular chart of yours and my charts?
Mark
(a.k.a. NihabaAshi Japanese Candlestick term
It was a chart from a futures website. I know the price action looks weird but I thought the pattern does not contradict your rules regarding the bullish white hammer.
Regarding your question..
I noticed your charts had a white interval before the dark WRB while mine has a dark interval. Is that the difference?
I also wanted to ask you about a pattern I saw today. It looks as it is a valid bullish white hammer pattern but I feel there is something wrong with it. Please look at the attached chart.
Regarding your question..
I noticed your charts had a white interval before the dark WRB while mine has a dark interval. Is that the difference?
I also wanted to ask you about a pattern I saw today. It looks as it is a valid bullish white hammer pattern but I feel there is something wrong with it. Please look at the attached chart.
Hi Weekly Trader,
No...a white candlestick line among the three intervals before the Dark WRB is not a requirement.
By the way, to prevent someone getting the wrong impression that's reading our recent posts...
The Dark WRB is not a requirement (rule) to occur among the three intervals before the White Hammer Line.
Thus, the Dark WRB is an if statement whenever it appears.
Weekly Trader, I've posted a lot of White Hammer patterns in this thread but to make it easier for you to figure out the answer...
Just review these charts at the below link.
http://www.elitetrader.com/vb/showthread.php?s=&threadid=52880&perpage=5&pagenumber=15
Compare those charts to your chart when there is a Dark WRB among those three intervals before the White Hammer Line.
http://www.elitetrader.com/vb/attachment.php?s=&postid=1089881
Take a long look at how those three intervals before the Dark WRB are relating to the body of the Dark WRB.
As for your question about the other chart...
http://www.elitetrader.com/vb/attachment.php?s=&postid=1090897
Your chart looks weird.
I see three different color candlestick intervals
* Red
* Black
* White
I can see the white candlesticks represent Close > Open
I can see the red candlesticks represent Open > Close.
However, what do the black candlesticks on your chart represent???
What charting program is that your using???
If different from futuresource...you seem to be bouncing around from one charting source to a different charting source.
The above leads into my next question...
What trading instruments do you trade???
With that said...your intuition is correct and there is something wrong with that pattern (not valid) for the same reasons as your prior chart.
http://www.elitetrader.com/vb/attachment.php?s=&postid=1089881
Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
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