I was looking back at charts already discussed to refresh. And noticed I was unclear as to validity of one hammer pattern. I checked it against the checklist that I now have and did not have when we first discussed this chart. It seems to pass the checklist as you can see below. But I just want to confirm with you that it is a valid pattern. See chart.
Trading Hammers (revisited)
- Thread starter NihabaAshi
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Yes...that's a valid Bullish White Hammer Pattern via the sub-group I'm discussing in this thread.
However, I would not have been able to get Long because of my Entry Signal method due to the fact that the interval after the pattern signal didn't tick low enough to allow me to possibly open a trade position.
NihabaAshi
Hi Remiraz,
Your still not providing any useful info about what type of Hammers you were looking at nor any specific rules for those particular type of Hammers Patterns.
That's ok.
Thus, there's no way to tell if you could be wrong or right.
Was just hoping you could share more info that could be useful to those reading your statements so that they'll have some insights into what specific Hammer patterns gave you the problems you said had no edge...
Going beyond the it doesn't work or no edge statements.
Take care...gotta prepare another chart to post that someone sent me and had a question about.
NihabaAshi
One man's feast is another man's famine.
I love tight stops and moving the stop to breakeven asap. However, if I did this when only +1 point I would get stopped out of so many good trades. Yesterday was a prime example, had a nice trade of +2.5, but if I had a +1 point stop to breakeven would have been stopped out on the low tick of the move.
Still, good luck to you as it is successful for you!
I agree it is sensible not to have a hard stop at the logical price area. However, another way of approaching this is to have a mental stop at the logical price area and see how the candles are reacting to that initial price penetration before closing the position. I find this works well for me . Could be a compromise between having a hard stop at the logical price area and having a hard stop significantly below the logical price area.
Hi LondonUSTrader,
Was that a Hammer Pattern trade ???
Also, you gotta realize that upon my entry into the trade...
My initial stop/loss protection is actually a very wide stop.
Then as the trade moves my way...
It gets re-adjusted to a breakeven trailing stop (tight stop)...usually with no further adjustments.
Then as the trade continues moving in my favor...
That once wide stop that became a tight stop...
Is now a wide stop again.
If it retraces and takes me out at breakeven before any WRB pt levels are reached...
Sometimes I get a re-entry signal at a lower price if it decides to reverse its direction and move back upwards.
The times I don't get a re-entry signal...
No biggie...there's always the next trade to look forward to.
NihabaAshi
Nice Suggestion,
Someone in the past here at ET (a few years ago) made a similar suggestion.
I use it sometimes and it works well.
A mental stop in that Logical stop area.
My hard stop is further away and based upon the current price action.
Takes a little practice to get use to.
NihabaAshi
September 8th Thursday
CME EuroFX - EC
Bearish Dark Inverted Hammer Pattern
Sub-group: reversal signal
Chart Interval: 60min
This pattern signal actually appeared on September 5th Monday.
The original chart was from a trader in Germany and I decided to use my own chart because I can put more info on it to answer his questions.
In the chart...there's that critical White WRB...it's an explosive price movement and usually sets up the appearence of a pattern signal (reversal or continuation).
In this particular price action...it set up a Bearish Dark Inverted Hammer reversal signal.
NihabaAshi
CME EuroFX - EC
Bearish Dark Inverted Hammer Pattern
Sub-group: reversal signal
Chart Interval: 60min
This pattern signal actually appeared on September 5th Monday.
The original chart was from a trader in Germany and I decided to use my own chart because I can put more info on it to answer his questions.
In the chart...there's that critical White WRB...it's an explosive price movement and usually sets up the appearence of a pattern signal (reversal or continuation).
In this particular price action...it set up a Bearish Dark Inverted Hammer reversal signal.
NihabaAshi
hi NihabaAshi
Is this a valid bullish dark hammer setup?
For bullish dark hammer, must its LS be longer than body and LS of any candles between the WRB and itself ?
I noticed for the Bullish dark hammers that you posted so far, Body of the Bullish Dark Hammer pattern is engulfed by the white line that showed up in the interval after the Hammer Line.
Is this a must ?
Because somewhere you said
"Dark Hammer lines are usually dependent upon the price action before and after its formation to determine if it traverses into a confirmed pattern"
Usually meaning is not a must right?
thanks
Is this a valid bullish dark hammer setup?
For bullish dark hammer, must its LS be longer than body and LS of any candles between the WRB and itself ?
I noticed for the Bullish dark hammers that you posted so far, Body of the Bullish Dark Hammer pattern is engulfed by the white line that showed up in the interval after the Hammer Line.
Is this a must ?
Because somewhere you said
"Dark Hammer lines are usually dependent upon the price action before and after its formation to determine if it traverses into a confirmed pattern"
Usually meaning is not a must right?
thanks
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