It's body was equal to the upper shadow. That price action is part of some unreliable Hammer sub-groups in comparison to what I do trade unless its a price action that occurs within my primary methodology. (Remember: Japanese candlesticks are only a secondary methodolgy to me.) A primary methodology that's not part of this discussion. NihabaAshi
I think you misinterpreted my quote In my quote I'm talking about Hammers as in Bullish White Hammer Patterns, Bullish Dark Hammer Patterns and Bearish Dark Inverted Hammer Patterns. Your only thinkng in terms of Bullish White Hammer patterns and that's why you don't understand the above quote. Once again... In this thread I am talking about three main groups of patterns... * Bullish White Hammer patterns * Bullish Dark Hammer patterns * Bearish Dark Inverted Hammer patterns When you re-read what you quoted... See what I said about one of the Bearish Dark Inverted Hammer sub-groups. NihabaAshi
It's not a range to me when there are WRB's among the recent price action such as in that chart. I run into trouble when there are no WRB's amoung the recent price action which usually shows up on my radar as a range. NihabaAshi
Why 20 words...why not 18 or 25 ??? Yes...I can describe a Hammer Line in 10 words or less I can describe a text book example of a Hammer Pattern in 25 words or less. However, I cannot do such via the type of Hammer patterns I'm discussing in this thread. Regardless, you have probably read this thread so far and realize I have been talking about far more info than just Hammer Lines. I can talk about a lot more but such would only throw the discussion in a different direction...away from Hammer patterns. Such is the main reason why I've already mentioned a few times I will not discuss particular things that's beyond the scope of this thread. However, if your looking for 25 words or less of a Hammer pattern I would trade... A Hammer pattern that meets all my rules in my trade methodology. 12 words. Last of all, if your unable or do not want to read all what I've said nor read what others have said... This thread is not for you because there are no short cuts...no cheat notes...no one chart that answers everyones questions. As someone already said...this is like a 300 level course. NihabaAshi
If your LS means Long Lower Shadow... Correct. Thus, if its a WRB among those prior 3 intervals...do not compare your LS to that WRB... Instead...compare it to the 3 intervals that occurs before the WRB. The above is about the Bullish White Hammer pattern. NihabaAshi
First of all, as you already know... I haven't revealed all the rules for either the Bullish White Hammer pattern, Bullish Dark Hammer pattern and Bearish Dark Inverted Hammer pattern. Eventually I will. Therefore, via what you know so far... You think it does qualify. It doesn't. I'll post more charts of that particular Bullish White Hammer that occurs in pullback price action after an uptrend. Hopefully you will catch on to the difference (why it doesn't qualify to me eventhough it may be suitable to you since you already trade hammers successfully) after those charts are posted. NihabaAshi
Maybe its my writing stlye that confuses you. Lets try this... You just told me above that you entered when high of the hammer signal (pattern) is taken out. I understand that. However, if I were to ask how long do you allow for price to take out the high before you consider the price action no longer valid for a Hammer trade... 5mins, 30mins, 3hours or what ??? Are you entering 1 tick above the high, 2 ticks above the high, 3 ticks above the high...what ??? Thus, its not as simple as you say it is in the below quote because I know darn well there's more to your simple trading plan Therefore, I think you meant your explanation is simple...not your method itself. Now...to equal what you said in your explanation of your entry method... Here's my entry method again (last time I'll repeat it). I entered when price retraces below the close of the bullish hammer signal (pattern) price. If you don't understand what I've said about my entry method then you cannot possibly understand what you told me about your own simple entry method. However, I will (again) define some key components of my entry method although you have not yourself... * I only enter my trade in the first interval that occurs after the pattern signal interval. * I only enter my trade when I know I can get a lower price (better entry price) in comparison to the pattern signal price. In other words, my broker execution platform and my realtime data vendor must show prices trading at a lower price (not equal and not above) than the pattern signal price. If price doesn't retrace in that first interval...no biggie...there's always another trading day (other opportunities). Once again...if you don't understand the above...I will not spend any more time trying to explain something that means i enter at a lower price below the pattern signal price (ooops...I just said it again). ...I changed the 5min interval to a 10min interval to look for any prior long lower shadows that hadn't been filled in by the price action that followed it... I did look on the 5min chart...there was no support for me there. If there was...I would have used it. Geesh, I'm already beyond my 20 word limit in explaning a Hammer pattern so I must stop for the night NihabaAshi
OK. I enter 1 tick above the high of the hammer only if it's taken out in the next candle, in the same timeframe. If it's not, then I don't enter at all. I understood that you enter only if the price traded lower than the close of the Hammer in the very next candle. But do you enter as soon as the price is lower than the close of the hammer? Or you wait until its X ticks below close of the hammer? Or by some other criteria? That's what I'm trying to understand.