A positive day i.e. a white candle is required the next day to confirm this signal.

#1
Hi all,

I started learning about Hammer concept, I have doubt.

Hammer is a one candle pattern that occurs in a downtrend when bulls make a start to
step into the rally. It is so named because it hammers out the bottom. The lower shadow of
hammer is minimum of twice the length of body. Although, the color of the body is not of
much signifi cance but a white candle shows slightly more bullish implications than the black
body. A positive day i.e. a white candle is required the next day to confi rm this signal.

from the above quote... I don't understand this sentence.
A positive day i.e. a white candle is required the next day to confi rm this signal.
Please advise.
 

RAAMAKANT

Well-Known Member
#2
Re: A positive day i.e. a white candle is required the next day to confirm this signa

Hi all,

I started learning about Hammer concept, I have doubt.




from the above quote... I don't understand this sentence.


Please advise.


After Hammer next day's EOD candle's closing should be above Hammer candle closing.
 
#3
Re: A positive day i.e. a white candle is required the next day to confirm this signa

Thanks bro,

The real body is at the upper end of the trading range. The color of the body is not
important although a white body should have slightly more bullish implications
From the above quote what is" the trading range "
How can I identify the trading range.
 

raul12

Active Member
#5
Re: A positive day i.e. a white candle is required the next day to confirm this signa

Thanks bro,



From the above quote what is" the trading range "
How can I identify the trading range.
It means that the upper vick/shadow of the candle is will be small.
Trading range here means the high/low for the day.

-bhavya
 

sspms2002

Well-Known Member
#6
Re: A positive day i.e. a white candle is required the next day to confirm this signa

Hi all,

I started learning about Hammer concept, I have doubt.




from the above quote... I don't understand this sentence.


Please advise.
I am also a new bee...and reading a variety of stuff ..So i actually disagree with you that Hammer is a one candle pattern...instead its more than one candle pattern..

The Hammer is basically an exhaustion candle after a down move..the size if hammer should be convincingly bigger then its past 2-3 candles...
Also the body color does not matter..but a Green has more chance of upmove..as compared to red...

If the next candle close above the hammer...its a good chance of upmove..
Also a hammer is a hammer only when in trend..else there is no meaning..
 

bunti_k23

Well-Known Member
#7
Re: A positive day i.e. a white candle is required the next day to confirm this signa

Dont know from where u had studied the candle stick patterns but here are the important points which steve nison has said:

1 - candlestick patterns dont give targets.
2 - trading only on candlestick pattern is strictly not advised , u have to combine something other western technicals to confirm the validity of pattern.

And about hammer .a hammer is a trend reversal pattern and it is confirmed if high of hammer is breached in next session and stoploss shd be placed below the low of hammer.

Just a thought since it is a trend reversal pattern so try to spot it near demand and supply levels.
 
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raul12

Active Member
#8
Re: A positive day i.e. a white candle is required the next day to confirm this signa

I am also a new bee...and reading a variety of stuff ..So i actually disagree with you that Hammer is a one candle pattern...instead its more than one candle pattern..

The Hammer is basically an exhaustion candle after a down move..the size if hammer should be convincingly bigger then its past 2-3 candles...
Also the body color does not matter..but a Green has more chance of upmove..as compared to red...

If the next candle close above the hammer...its a good chance of upmove..
Also a hammer is a hammer only when in trend..else there is no meaning..
I personally try to understand the essence of an pattern i.e whether it's implications are bullish/bearish. As long as you have clarity regarding this....the name of the pattern or whether its actually a pattern or not , becomes insignificant.

No offence to you and this is something which I read in a book and I liked it.

-bhavya