Trading Hammers (revisited)

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Quote from Weekly Trader:

Here is one:

http://www.elitetrader.com/vb/attachment.php?s=&postid=1092589

It is a valid bullish white hammer pattern..and the support zone of the dark WRB is certainly below the support zones of the 3 intervals before it (assuming the interval labeled "A" is a white interval).
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Hi Weekly Trader,

Yes, that's a valid White Hammer Pattern.

However, you said something odd.

What do you mean by assuming the interval labeled A is a white interval???

Thus, what's the Open price and Close price of that interval that you labeled as A?

What's the trading instrument you posted (symbol)?

Thanks.

Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
 
It was as usual a chart from a futures website. I did not pay attention to the symbol as much to the chart pattern. So I don't know which symbol it was.

As about the interval in question, I remember your rule about the 3 consecutive dark intervals before the hammer line. So if that was dark, then the close of the hammer line needs to be > open of the most recent dark interval before it..correct?. I am not sure however if that interval in question is dark or white.
 
Quote from Weekly Trader:

It was as usual a chart from a futures website. I did not pay attention to the symbol as much to the chart pattern. So I don't know which symbol it was.

As about the interval in question, I remember your rule about the 3 consecutive dark intervals before the hammer line. So if that was dark, then the close of the hammer line needs to be > open of the most recent dark interval before it..correct?. I am not sure however if that interval in question is dark or white.
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Ok...thanks for the explanation.

I think it would be in the best interest of this thread to only post charts where the candlestick lines are easy to determine if the close is greater than, less than or equal to the open.

In addition, probably a good ideal only to post charts of a trading instrument you actually either trade or monitor closely in realtime.

Thus, talking about and posting charts of stuff we don't even trade nor monitor in realtime contains no learning experience.

Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
 
I don't mind posting stock charts that I trade in realtime. I am learning the pattern and implementing it on stocks. I usually use stockcharts.com, bigcharts.com or iqchart.com. So if it is ok with you, I could post stocks that I trade in realtime using one of those charting programs.
 
Quote from Weekly Trader:

I don't mind posting stock charts that I trade in realtime. I am learning the pattern and implementing it on stocks. I usually use stockcharts.com, bigcharts.com or iqchart.com. So if it is ok with you, I could post stocks that I trade in realtime using one of those charting programs.
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Hi Weekly_Trader,

I didn't mean to imply to post realtime charts in this thread as patterns are occurring.

I meant that if your following a particular trading instrument in realtime...

Those are the pattern signals you will learn the most from because its actual price action from Open to Close that's fresh in your memory.

Then later in the day or a few days later...you can post charts of those Hammer pattern signals.

Whereas in comparison, trying to learn a pattern from something you don't trade nor monitor in realtime is a very difficult task...not recommended.

With that said...I don't recommend trying to learn Hammer patterns from hindsight charts as stated in my very first message in this thread.

I recommend doing live-recordings to understand the Hammer patterns when you review them later at your convienence and then use the hindsight charts as support only.

This is absolutely critical in developing an understanding and feel for the changes in supply/demand...

Something you cannot get from hindsight charts.

Learning Hammer patterns or any type of pattern signal...to prevent reaction lag caused by learning from hindsight charts as stated early in this thread...

Quote from NihabaAshi:
03-26-06 07:02 PM

...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...
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You're going to need to learn from live-recordings as your primary learning tool.

For your live-recordings I recommend Laptops with 5400 rpm hard-drives or higher...

Desktops with 7200 rpm hard-drives or higher.

I also recommend to do your live recordings of your realtime charts on a separate computer to prevent slowing down your broker execution platform (it can happen) that should be on a different computer.

Besides, computers are cheap these days and having a backup computer is just treating your trading like a business..

It's a smart thing to do.

Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
 
Sorry I am almost clueless about this "live-recording" technique.

Is that something to do with day-trading?

Maybe I am old-fashioned but what I do is studying charts that use historical prices before making a decision to trade. That is why I don't understand why I have to be "live-recording" my trades.
 
Quote from Weekly Trader:

Sorry I am almost clueless about this "live-recording" technique.

Is that something to do with day-trading?

Maybe I am old-fashioned but what I do is studying charts that use historical prices before making a decision to trade. That is why I don't understand why I have to be "live-recording" my trades.
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Hi Weekly_Trader,

First of all, if all your using is historical hindsight charts to study and prepare for trading...

Your missing a big piece of the puzzle when it comes to learning the markets.

Historical hindsight charts will not tell you how you would have reacted on those trading days.

The biggest piece of the puzzle is studying what is occurring today and how your interacting with the markets today.

Live-recording (screen recording) can be used regardless if your day trading, position trading or swing trading.

It's another way of documenting your trading day and I recommend it for any serious trader.

There are several programs on the market to do live-recordings (screen recordings).

http://www.google.ca/search?hl=en&q=Screen+Recorders&btnG=Search&meta=

These software will record everything you do on your monitor while your trading and you can record audio.

If you still don't understand its purpose...here's a good analogy.

Lets pretend your a serious athlete and you want to be able to review your training sessions and actual competitions to learn where your mistakes are occurring, to learn where improvements are needed and to record your actual performance in real competition...

To do such you get someone to bring a video camera and record what your doing.

That's live-recording (screen recording).

You can do the same thing (no video camera needed) via software that records everything that is occurring on your monitors.

By the way, what software are you using to do your screen image capture of those charts that you've been posting in this thread?

Today's live-recording software does the same thing but more...they can do screen capture of images and do live-recordings.

New computers these days its standard to come with DVD burners so that you can store your trading days on DVD.

I recommend putting your images and live-recordings all on DVDs instead of storing/keeping it on your hard-drive.

Also, there's prior discussions about software and what someone needs live-recordings for...

http://www.elitetrader.com/vb/showthread.php?s=&threadid=66419

http://www.elitetrader.com/vb/showthread.php?s=&threadid=56344

http://www.elitetrader.com/vb/showthread.php?s=&threadid=56416

http://www.elitetrader.com/vb/showthread.php?s=&threadid=53903

With that said...you do live-recordings for many months and soon you'll have a historical documentation of all your trading days...neatly stored on DVD for later review any time you want...

Using your hindsight charts for quick reference points into those DVDs.

Live-Recordings + Hindsight Charts = An Edge and we need all the edges we can get.

Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
 
Just wanted to post a nice hammer that formed this morning at open on the ER..

I still don't have all the rules from this thread down so I'm not going to comment on it..
 

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Quote from Flashboy:

Just wanted to post a nice hammer that formed this morning at open on the ER..
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Are you talking about that white hammer that got toasted by the red WRB after it?

Bad time to go long there!...:D Amazing it was almost matched
perfectly about 5 bars later by the white WRB going back up...:p
 
Quote from version77:

Are you talking about that white hammer that got toasted by the red WRB after it?

Bad time to go long there!...:D Amazing it was almost matched
perfectly about 5 bars later by the white WRB going back up...:p
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Yes I was.. not sure if it met Niha's requirements to go long.. the trend is down
 
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