Trading Hammers (revisited)

Discussion in 'Technical Analysis' started by NihabaAshi, Jul 26, 2005.

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  1. Sorry NihabaAshi,

    I have read a lot tonight and re-reading the first 6 pages, I found no evidence of you mentioning that. It must have been my assumption that this same rule for regular hammers would apply to inverted hammers.

    My apologies for the clutter.

    My best regards,
    MK
     
    #831     Jun 26, 2007
  2. Thanks MK,

    You didn't clutter up the thread because your question allows me the opportunity to discuss this further because it leads into another problematic area of Japanese Candlestick analysis.

    Thus, it helps to know that not all Hammers (white hammers, dark hammers, dark inverted hammers, white inverted hammers) are a like.

    Therefore, they are traded differently.

    Further, many traders mistakenly think that the White Shooting Star or Dark Shooting star is the inverted version of the White Hammer or Dark Hammer.

    This is far from the truth and the reason why the Shooting Stars are one of the most difficult patterns to trade...

    Often seen by traders as unreliable when in fact the trader are trading it incorrectly.

    By the way, I know you didn't mention anything about Shooting Stars but my message is aimed at those that may think that there's an inverse relationship between Shooting Stars and Hammers.

    Mark
    (a.k.a. NihabaAshi) Japanese Candlestick term
     
    #832     Jun 26, 2007
  3. Hi NihabaAshi,

    I'm still reading the thread (up to page 11) and categorizing the screenshots into a file.

    While watching markets though and doing my homework here I want to also participate a little...

    Here is a 120min chart of the crossrate GBP/CHF. Am I seeing things right?

    Thanks in advance.

    Best regards,
    MK
     
    #833     Jun 27, 2007
  4. Hi MK,

    If the upper shadow is > or = to the body of that White Hammer Line...

    It's not a valid pattern as discussed in this thread.

    By the way, do you know what market event caused the big red interval about three intervals before the White Hammer Line ???

    Mark
     
    #834     Jun 27, 2007
  5. Thanks Mark,

    I just measured the upper shadow and it is 2 pips longer. Well spotted.

    No, I don't recall what caused the big down bar, only thing I can remember was on that day (and since that day) the franc has been out performing both euro and pound. They ying and yang with each other ;)

    Kind regards,
    MK
     
    #835     Jun 27, 2007
  6. JSSPMK

    JSSPMK

    Daily SPX continuation bearish hammer

    <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1515595>
     
    #836     Jun 28, 2007
  7. How's bout this one? You wanna see big red intervals....check this one out Mark. No idea what caused the move this day. There was no Euro news that I could find so it must have been some Sweeden news. Was > 1500 pip 1 day decline.

    Best regards,
    MK
     
    #837     Jun 28, 2007
  8. Hi MK,

    A big red interval is not required for the Bullish White Hammer pattern and if it does show up that's ok.

    My prior reply to you was a question to you asking you if you knew what caused it on your chart...a reply you answered.

    Thanks for the chart today.

    Mark
    (a.k.a. NihabaAshi) Japanese Candlestick term
     
    #838     Jun 29, 2007
  9. July 2nd Monday 2007

    CME S&P MidCap 400 Emini - EMD

    Bullish White Hammer Pattern
    Sub-group: continuation signal
    Chart Interval: 5min
    PT Levels: not shown so you can figure them out on your own

    It's been a long while since I've posted a chart in this thread but I was prompt to do so by someone yesterday that has a strong interest in the Emini EMD and Hammer patterns.

    What I like about this particular price action is that it occur within a price pullback, after declining volatility and within many different s/r zones depending upon how you compute your s/r info.

    Mark
    (a.k.a. NihabaAshi) Japanese Candlestick term
     
    #839     Jul 2, 2007
  10. JSSPMK

    JSSPMK

    bull hammer, but needs confirmation ImO

    <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1552619>
     
    #840     Aug 1, 2007
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