Trading Hammers (revisited)

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April 13th Thursday 2006

CBOT mini-sized Dow - YM

Bullish White Hammer Pattern
Sub-group: reversal signal
Chart Interval: 2min
PT Levels: not shown so you can figure them out on your own

The 10am est Business Inventories helped clear up the noise caused by the 0945am est Consumer Sentiment report and gave YM its first real signal in the range of two prior Dark WRBs (0904am and 0940am est) at the same time getting big time support from bullish patterns (not hammers) in Oil around 10am est.

The 1030am est EIA Natural GAS report kepted this from declining further and helped pushed YM into intraday highs.

Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
 

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Mark,

1. How many charts do you have switched on and what time frames (in ES let's say)?

2. If you get a signal in 2 minute chart, would you be looking for a confirmation in 5 or maybe 8 minute charts in the sub-groups you are discussing in this thread?

Thanks,

Romik
 
Quote from romik:

Mark,

1. How many charts do you have switched on and what time frames (in ES let's say)?

2. If you get a signal in 2 minute chart, would you be looking for a confirmation in 5 or maybe 8 minute charts in the sub-groups you are discussing in this thread?

Thanks,

Romik
More...

Hi Romik,

Answer #1: I don't get fixated on any one particular chart interval.

However, I will say this...I don't trade via the 1min chart interval nor lower unless I plan on scalping and I'm no scalper.

I have on my monitors ER2, ES, NQ, YM, EuroFX, their respected index...

All set at different intervals to allow me to see the entire playing field.

Also, depending upon what the key market event is for the trading day (I use an economic calendar)...

I'll have two other charts of either different trading instruments or indexes of those different trading instruments...

Set at whatever the interval is for the day in ES.

The above mentioned trading instruments will be setup via the following intervals (2min, 3min, 5min, 10min, 15min, 60min, 120min, daily and weekly).

Depending upon what type of trading I'm going to be doing for the day (such is decided prior to the open)...a few of the above intervals aren't going to be used.

Thus, for example, I tend to use the higher chart intervals for Swing Trading.

If I'm going to be day trading today you aren't going to see the 60min, 120min, daily nor weekly charts on my monitor.

Yet, if someone said I can only use one chart and one interval to trade...

I would pick the 5min chart because that's the easiest interval for me to do candlestick blending or deblending to determine what's occurring on the lower or higher chart intervals eventhough I only have up on my monitor just the 5min chart.

Answer #2: Although its good to use higher intervals as confirmation signals.

I don't use higher chart intervals for such.

Instead, I use the higher chart intervals to help with my position size management to tell me if I'm either counter-trend trading, trend reversal trading or trend continuation trading...

Using such as one of the variables in my risk control.

Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
 
Quote from optionpro007:



In your experience, when dealing with short-term intraday charts, (1min-5min) if I was to focus exclusively in the most dependable of all candlestick formations for these time frames, which one should I use in your opinion?
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Nihaba (Mark), I too would like a pm to the answer to optionpro007's question...:)
 
Looking at this thread's name, I'm guessing NiHabaAshi's preference is the hammer / shooting star...
Quote from version77:

Nihaba (Mark), I too would like a pm to the answer to optionpro007's question...:)
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Including, as NiHabaAshi mentioned, "candlestick blending or deblending" to get hammers / shooting stars.
Quote from cnms2:

Looking at this thread's name, I'm guessing NiHabaAshi's preference is the hammer / shooting star...
More...
 
Quote from FuturesTrader71:

NihabaAshi,

Thanks for the reply. I was wondering if you have a particular post, thread or journal that explains your most common setups and your style. You have a lot of posts and it would take a lot of time to get to the basics. Can you point me to the right place so I can get some background?

Thanks.
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Hi FT71,

I just sent you a private message that answers your question.

NihabaAshi



Hi NihabaAshi!

Great thread. Do you mind sending me this PM?

Best regards,

Daniel
 
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