Quote from romik:
Mark,
Looking at my previous 15 minute chart, isn't it a "Dark Hammer pattern that involves bullish trend reversals and bullish trend continuation price action."
"It's sub-groups...
Bullish trend reversal"
I compared your sample charts of the above pattern to the chart that I posted, they are very similar.
Hi romik,
I don't think your looking at the correct charts because my charts involves the critical "engulfing" price action and your 15min chart does not involve any "engulfing" price action.
Here is the direct link again with the rules...
http://www.elitetrader.com/vb/showthread.php?s=&threadid=52880&perpage=5&pagenumber=53
Just to make sure your reading it correctly...I've copied out the rules from the above link and posted them below:
* Body of the White Line (c1) engulfs the body of the Dark Line (c3).
Chart must show Close of White Line (c1) > Open of Dark Line (c3) and that Close of Dark Line (c3) > or = Open of Dark Hammer Line (c2).
* White Line (c1) is a White WRB.
* Close of White Line (c1) must be < or = Highest High among the prior three intervals.
http://www.elitetrader.com/vb/attachment.php?s=&postid=840557
Use the above chart and its annotations that correlates with the above rules I stated to understand the other below charts that were posted in this thread for the Bullish Dark Hammer Pattern.
http://www.elitetrader.com/vb/attachment.php?s=&postid=819656
http://www.elitetrader.com/vb/attachment.php?s=&postid=801581
http://www.elitetrader.com/vb/attachment.php?s=&postid=803412
http://www.elitetrader.com/vb/attachment.php?s=&postid=802602
Simply, your chart that's reposted below...
http://www.elitetrader.com/vb/attachment.php?s=&postid=1019364
The White Line (c1) is not engulfing the Dark Line (c3).
Therefore, be careful about
similar like patterns.
These are specific detailed rules and they are not subjective.
Yet, if you analyze something thats
similar that's like same it looks close enough but the price action doesn't qualify by some of the specific rules.
Simply, the word
similar to me is like somebody asking me if its ok if 3 or the 7 rules are only qualified.
The answer is NO because we don't want to get into the habit of ignoring, removing or changing the rules...
To do so implies you know you will be trading something
different.
Once again, your 15min chart has a Dark Hammer
Line but is not a Dark Hammer
Pattern via what
I myself look for.
Now...lets pretend we have the ability to change your chart so that it meets the rules I've outlined so far.
We would need to see that White Line (c1) on your chart have its Close > Open of the Dark Line (c3) while at the same time the Close of White Line (c1) < or = Highest High among the prior three intervals.
Also, I'm not saying there was no bullish price action involving that Dark Hammer Line in your 15min chart.
I'm just saying the bullish price action that I myself have discussed in this thread with specific rules so far and with plenty of chart examples...
Your chart example cannot be included as one of the examples of my favorite type of Bullish Dark Hammer Patterns.
However, if you have your own rules for that particular price action in your 15min chart...that's what this thread is all about in discussing the specifics about some of our favorite price action to trade.
With that said, if your reference was about a different type of Bullish Dark Hammer pattern that I'm not discussing in this thread nor will I discuss any of the other dozen or so sub-group types of Bullish Dark Hammer patterns (most aren't reliable).
I'm just concentrating on one particular type of Bullish Dark Hammer pattern sub-group that can behave as either a
reversal signal or a
continuation signal to prevent any misinterpretations via talking about other
similar like patterns that are reacting to a different type of price action.
Last of all, if you missed that that critical
engulfing rule that was highlighted with bold fonts with a direct link I posted earlier...
That tells me you need to slow down, write down the rules prior to attempting to analyze that particular type of Bullish Dark Hammer pattern sub-group because its too early in the game to try to memorize and react to them.
A reaction that can't be learned from hindsight charts because it will cause trading problems (misinterpretations) and such can be avoided via studying live-recordings as stated in my very first message post in this thread.
Later on in the this thread I was a little more specific about the problems of studying from hindsight charts only (without live-recordings) and that problem was called
reaction lag.
Hindsight charts make every thing look pretty but does not have the ability to duplicate nor simulate that price action as it was occurring and leading into the Hammer pattern formation.
Use your hindsight charts as a quick reference point into your live-recordings.
Mark
(a.k.a.
NihabaAshi) Japanese Candlestick term
