Trading Hammers (revisited)
- Thread starter NihabaAshi
- Start date
- Status
Hi romik,
I like the annotated charts.
Out of curiosity, does your horizontal s/r lines helps with your WRB profit targets?
Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
I like the annotated charts.
Out of curiosity, does your horizontal s/r lines helps with your WRB profit targets?
Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
Hi Mark,
Good question, IMO there is no single answer to that one. If you simply refer to profiting of WRB levels - NO, there is no need for them. But, they are there for other reasons. When I have an open position I trade off T&S mostly, charts and pivots are there for referencing. I have to mention that my primary system exploits relatively small gains in short time frames. At the moment I trade 1/10th of my usual position size via Hammer lines until I have consist profits and feel confident in increasing position size. Yesterday was such a day that perhaps there was no need for S/R lines, as S&P seemed to have a clear S/R levels in WRBs' highs. S/R and auto trend lines are used by so many traders that I could not yet ignore them, especially when trading is choppy. As the market has an intraday tendency to react to other economic data and considering the fact that I am still primarily a "scalper" and I still see benefit in using S/R levels and trend lines.
Romik
EDIT: S/R levels via WRBs could be different in different time frames in charts. Any advice on this subject?
Good question, IMO there is no single answer to that one. If you simply refer to profiting of WRB levels - NO, there is no need for them. But, they are there for other reasons. When I have an open position I trade off T&S mostly, charts and pivots are there for referencing. I have to mention that my primary system exploits relatively small gains in short time frames. At the moment I trade 1/10th of my usual position size via Hammer lines until I have consist profits and feel confident in increasing position size. Yesterday was such a day that perhaps there was no need for S/R lines, as S&P seemed to have a clear S/R levels in WRBs' highs. S/R and auto trend lines are used by so many traders that I could not yet ignore them, especially when trading is choppy. As the market has an intraday tendency to react to other economic data and considering the fact that I am still primarily a "scalper" and I still see benefit in using S/R levels and trend lines.
Romik
EDIT: S/R levels via WRBs could be different in different time frames in charts. Any advice on this subject?
Hi Mark and All,
Found another White Hammer Pattern today via 15 minute chart on e-mini S&P500 June 2006 contract. Price decline @ 14:00 IMO is due to crude oil futures breaking $75.00 level, White Hammer Line confirmed a possible reversal formation, bouncing off yesterday's low level (1311.75 marked by a yellow line on chart). Profit Targets are marked on the attached chart with levels taken from WRB's Highs.
Romik
Found another White Hammer Pattern today via 15 minute chart on e-mini S&P500 June 2006 contract. Price decline @ 14:00 IMO is due to crude oil futures breaking $75.00 level, White Hammer Line confirmed a possible reversal formation, bouncing off yesterday's low level (1311.75 marked by a yellow line on chart). Profit Targets are marked on the attached chart with levels taken from WRB's Highs.
Romik
Hi dsandstr,
I don't trade stocks nor do I monitor them and that by itself prevents me from giving trading advice about something I don't even trade.
When it comes to specific trading advice...I can't give that nor is it appropriate for me to do such because as you know I do a lot of analysis to why the Hammer pattern is produced and I know absolutely nothing about those stocks to tell me what's going on to produce those Bearish Inverted Hammer patterns.
To do that I would need to know what's going on with your stock et cetera.
More importantly, anytime someone is willing to tell you when to Short or when to go Long...
They must also be monitoring that trade with you in realtime to tell you when to adjust your trailing stop, when to take profits or when to reverse the position into the opposite direction when a position reversal signal appears et cetera.
That's the proper way to give trading advice because its a package deal (entry to exit) and to tell someone to do something via only part of the story and not give advice for the remainder of the trade...
It's not good trading advice.
I will say this about your Bearish Inverted Hammer pattern...
http://www.elitetrader.com/vb/attachment.php?s=&postid=1046871
It is a valid Bearish Inverted Hammer pattern via what I'm discussing in this thread.
As for the other pattern...
http://www.elitetrader.com/vb/attachment.php?s=&postid=1046874
It's not a valid Bearish Inverted Hammer pattern via this my discussion in this thread although it is a valid low probability Bearish Inverted hammer sub-group that's not discussed in this thread.
Sorry I couldn't give you assistance on this possible trade your considering.
Please give us an update about the results of the pattern in those stocks regardless if you take the trades or not.
Thanks.
Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
Hi romik,
Yes...s/r levels (zones) can be different on when you change time frame on your charts.
I recommend to just keep it simple.
Thus, for your s/r zones...use the same chart interval that your pattern signal occurred on.
Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
April 21st Friday
CME Russell 2000 Emini - ER2
Bullish White Hammer Patterns
There were three White Hammer Lines after 2pm est (1400hrs) and only one of them is a valid Bullish White Hammer Pattern I'm discussing via this thread.
Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
CME Russell 2000 Emini - ER2
Bullish White Hammer Patterns
There were three White Hammer Lines after 2pm est (1400hrs) and only one of them is a valid Bullish White Hammer Pattern I'm discussing via this thread.
Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
- Status