Trading Hammers (revisited)

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Quote from rainman2:

...Also you have mentioned many times about using WRB's as support/resistance. I am very interested in anything you have to say about the 50% level of a WRB?

Thanks in advance.
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Quote from rainman2:

Hi NihabaAshi,

http://www.elitetrader.com/vb/attachment.php?s=&postid=1082785

Correct analysis or hindsight analsis???

Thanks
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Hi rainman2,

What your discussing is using Hammers completely different than how I'm discussing them in this thread.

Nothing wrong with that.

However, because I don't use Hammers like that nor do I know what your specific rules are other than the 50% level (mid-point of the body of a WRB)...

I don't know if it is correct analysis although I understand the logic of it.

Also, WRB Analysis is completely independent from Candlestick Analysis.

Two different methodologies.

I'm unwilling to go deep into WRB Analysis because its too big of a discussion for this thread especially if its being discussed in a way I don't even use it or discussed as something that's subjective or with very little rules.

It will also take away from the Hammer pattern discussion which is something I do not want to occur.

By the way, I'm a rule (criteria) trader and I need to be able to define every aspect of the pattern signal, entry signal, initial stops, trailing stops, profit targets and contingency plans.

Only subjectivity for me right now is the profit targets after a WRB pt1 level if trading size (not trading via 1 contract).

Therefore, when someone shows a chart that uses Hammer patterns differently than what I'm discussing...

Hopefully they reveal all the rules their using which is the purpose of this thread to meet others using Hammer patterns a different way.

Going back to your edited chart of my chart...

What your showing looks interesting and merits researching.

Makes starting this thread worthwhile because now I'm learning something that may be applicable and profitable.

Whatever, you discover especially if you start developing rules or criteria to go along with the 50% level criteria to help remove subjectivity from the pattern signal...

Please pm me to further the discussion because I'm interested in exploring what your seeing...

What your showing on the chart is something I never noticed before and I think it merits further discussion.

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

NihabaAshi,

May I ask if the attached is a valid busllish dark hammer line with a continuation sub-group?
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Looks like you weren't able to attach (upload) your chart.

If your still having problems...read this and it may help...

Attach file:
Maximum size: 1048576 bytes

Valid file extensions: gif jpg png doc xls pag txt pdf zip

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

http://www.elitetrader.com/vb/attachment.php?s=&postid=1086764

Here it is. Hopefully it is clear enough. I reduced the size just in case.
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Hi Weekly Trader,

No...that's not a Bullish Dark Hammer pattern sub-group type I'm talking about in this thread.

The rules I've discussed so far are clear about the engulfing price action and the types of candlestick lines that occurs prior to the white line.

Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
 
Ok it seems I have missed something. The interval after the hammer line seems to engulf the intervals before the hammer line, and I think the low shadow of the hammer line > the lower shadows of the 3 intervals before the hammer line.

Is it by any chance because of the white WRB?
 
Quote from Weekly Trader:

Ok it seems I have missed something. The interval after the hammer line seems to engulf the intervals before the hammer line, and I think the low shadow of the hammer line > the lower shadows of the 3 intervals before the hammer line.

Is it by any chance because of the white WRB?
More...

Hi Weekly Trader,

Can you post the rules your using.

Thanks.

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

Ok it seems I have missed something. The interval after the hammer line seems to engulf the intervals before the hammer line, and I think the low shadow of the hammer line > the lower shadows of the 3 intervals before the hammer line.

Is it by any chance because of the white WRB?
More...

Hi Weekly_Trader,

I'll let you determine why your pattern is not a Bullish Dark Hammer pattern sub-group via what I've disclosed as the criteria so far via the detailed discussions about the specific rules below earlier in this thread...

http://www.elitetrader.com/vb/showthread.php?s=&threadid=52880&perpage=5&pagenumber=53

http://www.elitetrader.com/vb/showthread.php?s=&threadid=52880&perpage=5&pagenumber=95

The above discussions will give you a detailed understanding of the engulfing aspect of the pattern.

Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
 
** Close of white WRB (after the Dark Hammer line) must be <= highest high among the prior 3 intervals ***

The high of that white WRB is way below the high of the first interval before the dark hammer line -- is that why it does not meet your rule?
 
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