Hammer And Hanging Man Lines — ExploitByte
Hammer And Hanging Man Lines — candlesticks with long lower shadows and small real bodies. The real bodies are near th.e top of the daily range. The variety of candlestick lines shown in the exhibit are fascinating in that either line can be bullish or bearish depending on where they appear in a trend.
Hammer And Hanging Man Lines
If either of these lines emerges during a downtrend it is a signal that the downtrend should end. In such a scenario, this line is labeled a hammer,
as in “the market is hammering out” a base. See Interestingly, the actual Japanese word for this line is takuri. This word means
something to the affect of “trying to gauge the depth of the water by feeling for its bottom.”
If both of the lines in arise after an assembly it lets you know that the earlier move might be finishing. Such a line is unfavorably called a hanging man. The name hanging man is gotten from the way that it seems as though a draping man with hanging legs.
It might appear to be uncommon that a similar candle line can be both bullish and negative. However, for those acquainted with Western island tops and island bottoms you will perceive that the indistinguishable thought applies here. The island arrangement is either bullish or negative contingent upon where it is in a pattern. An island after a drawn out upswing is negative, while a similar island design after a downtrend is bullish.
The hammer and hanging man can be recognized by three criteria:
1. The real body is at the upper end of the trading range. The color of the real body is not important.
2. A long lower shadow should be twice the height of the real body
3. It should have no, or a very short, upper shadow.
The more extended the lower shadow, the more limited the upper shadow and the more modest the genuine body the more significant the bullish mallet or negative hanging man. Albeit the genuine body of the mallet or hanging man can be white or dark, it is somewhat more bullish assuming the genuine body of the sledge is white, and somewhat more negative in the event that the genuine body of the hanging man is dark. In the event that a mallet has a white genuine body it implies the market auctions off strongly during the meeting and afterward bobbed back to close at, or close, the meeting’s high. This could have bullish consequences. Assuming a hanging man has a dark genuine body, it shows that the nearby couldn’t return to the initial value level. This could have possibly negative ramifications.
Hammer And Hanging Man Lines
It is especially important that you wait for bearish confirmation with the hanging man. The logic for this has to do with how the hanging-man line is generated. Usually in this kind of scenario the market is full of bullish energy. Then the hanging man appears. On the hanging-man day, the market opens at or near the highs, then sharply sells off, and then rallies to close at or near the highs. This might not be the type of price action that would let you think the hanging man could be a top reversal. But this type of price action now shows once the market starts to sell off, it has become vulnerable to a fast break.
Assuming that the market opens bring down the following day, the people who purchased on the open or on the other hand close of the hanging-man day are presently left “hanging” with a losing position. Consequently, the overall rule for the hanging man; the more prominent the down hole between the genuine body of the hanging-man day and the opening the following day the almost certain the hanging man will be a top. Another negative confirmation could be a dark genuine body meeting with a lower close than the hanging-man meetings close.
Hammer And Hanging Man Lines
In Figure 2 an excellent example of Hammer When It Made The Price Of Tata Stell Is Going Down Hammer can Be (Red/Black) Or (White/Green) Colour Doesnot matter In the Hammer it Matter where it Goes. From 9th dec 2021 To 20 Dec 2021 (daily Chart) Tata Steel Fall Because Of hammer.
I Can Give Another Example Of Reliance Industries On 13 jan 2022 (5min) Chart Your Can See In Figure 3 How the price Is reacted Its Bearish hammer But Where The Price Goes It Goes Upside. thats why I tell You color doesnot matter in hammer.
As discussed above, there are certain aspects that increase the importance of hanging-man and hammer lines.
The longer the lower shadow, the more perfect the pattern.
Hammer And Hanging Man Lines
In Figure 4 It Clear Indication Bullish Hammer And Price Also Goes upper Side In Bank Nifty You Can trade As your Comfort But At Least Check The Candle Color And Volume So To Help You For Trading.
In Figure 5 Is Two Bearish hammer But We Have Wait For Confirmation But After Green Candle You can See Where The Market Goes So If You Have Wait Untill The Right Direction This 5 min Chart But In daily Chart It More confirmation to Go Downside.
As Of Trading Carrier I See Hammer In Lots Of Time Frame But If You Wati For Right Entry. Hammer Give Bigger Profit That You can Not Expect But In Trading hammer See Very time But When It See Grab It And Make Profit.
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Originally published at https://exploitbyte.com on March 20, 2022.