Discussion in 'Technical Analysis' started by moolah, Feb 9, 2018.
Can the body of the Hammer and Hanging Man be either black or white in colour?
In principle, the answer's "yes".
(And you can see that the smaller the body is, in proportion to the candle's entire length, the less the disparity between the open and the close is going to signify anyway? Both are just "candles with a very small real body at their top".)
It's really important and helpful to be aware that these structures (and especially when you're looking at candles rather than at bars) visually emphasise the opens and the closes, and that - unlike highs and lows - those are essentially arbitrary and user-defined. The one which, at the top of an uptrend, you call a "hanging man" (though you'd call it a "hammer" at the bottom of a downtrend), seen on a much faster time-frame, would look exactly like a "double top", wouldn't it (or sometimes even a "multiple top")? Be aware that "how it looks" is inherently user-defined.
Most reliable on daily charts (not shorter time frames) AND at potential "bottom/top of a swing". Both infer "possible rejection of swing continuance".
Any candlestick line on charts can be black or white except for dojis.
In fact, they don't need to be black/white...you can setup any color on today's candlestick charts. For example, many traders use red/green.
What a timely day to ask this question.
There is a big ass thread here regarding hammers.
Yes, same thing anyway, both look like a hammer, but @ the top it does make more sense to call it a hanging man -hang'em HI LOL. Of course good trends could easily have 2 monthly hammers,, or 2 hanging men candles in a row. I assume that was a trend question rather than a color question.
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