Trading Hammers (revisited)

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Quote from Flashboy:

Yes I was.. not sure if it met Niha's requirements to go long.. the trend is down
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IMHO one of the most sensible approaches would have been the following:

1. Enter long after the hammer line with YOUR predetermined stop loss with 50% of your maximum position size;

2. Get stopped out;

3. Re-enter with 100% position size after price breaks through resistance of the 9.35 WRB's High.

This is not hypothetical advice, I use this strategy pretty much all the time when trading these type signals.

Romik
 
Quote from Flashboy:

Just wanted to post a nice hammer that formed this morning at open on the ER...

http://www.elitetrader.com/vb/attachment.php?s=&postid=1095491

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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Hi Flashboy,

You seem to have a strong attraction for this particular type a Bullish White Hammer pattern because you've shown the same price action in another thread and once in this thread...

In my recent discussion of this pattern in this thread with you @ 05-16-06 08:11 PM...you'll find your answer.

http://www.elitetrader.com/vb/showthread.php?s=&threadid=52880&perpage=5&pagenumber=115

* Not reliable (low reliability)
* Not valid via what I'm discussing in this thread

Also, I've stated a few times in this thread that the Body > Upper Shadow.

Now...when does a White Hammer Line traverse into a valid pattern after three consecutive dark intervals???

* Close of the White Hammer Line > Open of the most recent Dark Line

The above did not occur in your ER2 chart.

Your 5min chart has a Body = Upper Shadow.

The key to remember about that pattern not being valid (not reliable) is those three consecutive dark intervals that occur as the most recent intervals to the White Hammer Line.

There's far too much selling pressure for the buyers to overcome and those that did go long are easily shaken out especially with the same market pressures (Iran, Oil and Bernanke) still intact as prior trading days.

Quote from Flashboy:

Yes I was.. not sure if it met Niha's requirements to go long.. the trend is down
More...

Write the rules down or make an enlargement of the pattern to put on your wall behind your monitor that saids...

I'm not allowed to trade nor think about this particular sub-group pattern.

:D :D :D

Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
 
Sorry I am very much a noob, trading agame account, and don't knwo how to link screenshots from the Oanda platform.

There was a Bullish dark hammer in the AUD/UDS 15 min chart at 9am on 6-5-06. the chart then moved up 40 pips in the next 3 hrs.

This is an excellent thread BTW.
 
BBullish hammer on the GBP/USD and Eur/UDS 15 min charts at 10 am this morning.

Sorry I can't post the graphs, someone might take a look.
 
Quote from trader knj:

Sorry I am very much a noob, trading agame account, and don't knwo how to link screenshots from the Oanda platform.

There was a Bullish dark hammer in the AUD/UDS 15 min chart at 9am on 6-5-06. the chart then moved up 40 pips in the next 3 hrs.

This is an excellent thread BTW.
More...

All you need is a screen capture program to capture the image that you see.

Much better than linking to Oanda especially if someone reads this thread tomorrow and click on the link while the image at your link is only showing current info and not the info you were talking about.

The link below have a bunch of screen capture programs.

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

The one I use is called Snagit by techsmith.

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

Hi Flashboy,

You seem to have a strong attraction for this particular type a Bullish White Hammer pattern because you've shown the same price action in another thread and once in this thread...

In my recent discussion of this pattern in this thread with you @ 05-16-06 08:11 PM...you'll find your answer.

http://www.elitetrader.com/vb/showthread.php?s=&threadid=52880&perpage=5&pagenumber=115

* Not reliable (low reliability)
* Not valid via what I'm discussing in this thread

Also, I've stated a few times in this thread that the Body > Upper Shadow.

Now...when does a White Hammer Line traverse into a valid pattern after three consecutive dark intervals???

* Close of the White Hammer Line > Open of the most recent Dark Line

The above did not occur in your ER2 chart.

Your 5min chart has a Body = Upper Shadow.

The key to remember about that pattern not being valid (not reliable) is those three consecutive dark intervals that occur as the most recent intervals to the White Hammer Line.

There's far too much selling pressure for the buyers to overcome and those that did go long are easily shaken out especially with the same market pressures (Iran, Oil and Bernanke) still intact as prior trading days.



Write the rules down or make an enlargement of the pattern to put on your wall behind your monitor that saids...

I'm not allowed to trade nor think about this particular sub-group pattern.

:D :D :D

Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
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thanks.. I was hoping you'd answer with the rules here so I didn't have to go digging for them...
 
Hi NihabaAshi,

I guess after a day like today you knew a question like this would come up. Any clues or rules that you are willing to share on the closing position of the bullish white hammer would be appreciated.Thanks in advance.
 

Attachments

I apologize for the SPY attachment, that question has been answered at least twice in the last week or so on this thread. My question to you is if the 3 candle lines leading up to the white bullish hammer are not all red candle lines(lot of selling pressure)then does the closing position of the white bullish hammer matter? What if the candle line before the white bullish hammer is a WRB, where should the bullish white hammer close be to ensure that demand has overtaken supply?
Thanks in advance
 
Quote from rainman2:

I apologize for the SPY attachment, that question has been answered at least twice in the last week or so on this thread. My question to you is if the 3 candle lines leading up to the white bullish hammer are not all red candle lines(lot of selling pressure)then does the closing position of the white bullish hammer matter? What if the candle line before the white bullish hammer is a WRB, where should the bullish white hammer close be to ensure that demand has overtaken supply?
Thanks in advance
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Hi rainman2,

Hopefully the pm cleared things up a little.

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