Trading Hammers (revisited)

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

Thread Status:
Not open for further replies.
  1. Remiraz

    Remiraz

    the question is: how do we know these "others" have an edge with hammers?
     
    #251     Sep 10, 2005
  2. That's easy...

    Find a thread where traders (the others) are doing the following:

    * Posting chart examples of their Pattern Signal.

    * Posting the rules or revealing many aspects of their trade methodology or trading plan.

    They don't need to reveal everything...just enough for you to get a good peek inside to what they are doing.

    * Find out what other areas of their trading gives them an edge while they are trading Hammers.

    Take all the above and compare it to someone (such as yourself) that saids they don't have an edge in trading Hammers.

    If you see that they (those with edges) are doing things differently in comparison to someone that has no edge along with testing/applying some of those things for yourself...

    Then...if there's an improvement in your trading of Hammers...

    That should be good enough to continue the discussion about trading Hammers regardless if you consider that approach to Hammers or to any other method as an edge or not.

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=52147&perpage=5&pagenumber=2

    NihabaAshi
     
    #252     Sep 10, 2005
  3. Now that I've answered your questions...

    Here's my question to you because you have continued posting in this thread...

    I've attached a 60min chart of the CBOT 10 Year Treasury Note - ZN

    On that chart are Bullish White Hammer Patterns that would show up on most traders radar screen.

    However, via what sunnyskies has summarized about my rules of a valid Bullish White Hammer Pattern...

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=52880&perpage=5&pagenumber=42

    (Note: There are a few more rules that's being intentionally saved for later discussions. However, what's posted so far should give you a good peek sort'uv speak.)

    Which of those White Hammers would I have traded and which ones would you have traded ???

    I'll give you some hints about which ones I would have shown up on my radar screen:

    * Based upon my trade methodology of Bullish White Hammer Patterns...

    Only two of those seven Bullish White Hammer Pattern (WH) would have shown up on my radar screen.

    The five particular sub-groups that I would have ignored are not very reliable.

    * My edge in trading this particular hammer sub-group would have reached a WRB pt2 profit level (read thread to know what my definition is of a WRB Profit Target).

    Good luck with the quiz and I look forward to your reply.

    NihabaAshi
     
    #253     Sep 10, 2005
  4. September 9th Friday

    CME EuroFX - EC

    Bullish White Hammer Pattern
    Sub-Group: reversal signal
    Chart interval: 15min

    I've highlighted two different sub-groups of Bullish White Hammer Patterns.

    The sub-group I'm discussing in this thread is annotated with the words White Hammer Line and Bullish Price Action.

    The other sub-group that I'm not discussing in this thread (except for some chart examples) is annotated with the word WH1 in this particular chart of EuroFX EC.

    WH1 is a valid Bullish White Hammer and based upon the location of the White WRB prior to that White Hammer Line...

    It's a continuation signal and one that failed.

    However, its a less reliable sub-group (I stopped trading it many years ago...no edge) in comparison to the sub-group I'm discussing in this thread that I do trade.

    Use sunnyskies rules summary if you can't see the difference between the two Bullish White Hammer Patterns on the chart.

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=52880&perpage=5&pagenumber=42

    NihabaAshi
     
    #254     Sep 11, 2005
  5. Remiraz

    Remiraz

    No, sorry. Those doesn't show that they have an edge. Moneytec is filled with people who do all of the above and claim they make 1000+ ticks a month. Highly doubt they have any edge though.

    It takes about 10,000 trades to show if an edge exists. These guys are claiming edge with about 20.

    I'll stop posting now to avoid hijacking this thread. :D

    We can continue thru pm if u want~
     
    #255     Sep 11, 2005
  6. I don't know what Moneytec is nor do I know what it has to do with this thread or EliteTrader.com

    Also, I haven't seen anyone in this thread claim to be making + number of ticks per month nor day.

    If someone does...

    I'll surely ask them to share some in-depth info to prevent me from viewing it as chit chat material.

    Hmmm...if it takes 10,000 Hammer Pattern trades to verify an edge.

    That means it must take 10,000 Hammer Pattern trades or testing to verify there's no edge ???

    You did mentioned you and another trader found out you had no edge while trading/testing Hammers.

    :D

    What trading instruments did you examine 10,000 Hammer Patterns ???

    :D

    Thanks for participating and you answered my questions before this post via not answering them.

    Thus, no need for any pm.

    NihabaAshi
     
    #256     Sep 11, 2005
  7. Just wanted to put in a thank you to sunnyskies for doing these summaries... :)
     
    #257     Sep 11, 2005
  8. I think this violatted the rule about LS of hammer being longer than bodies of previous candles (in this case it's equal). Not sure because the ruleset for Dark Bullish Hammers is still un-disclosed. BTW, FOR ME this trade would have been a loser if I would have entered it :)
     
    #258     Sep 12, 2005
  9. mogul

    mogul

    i've tested hammers via tradestation and they do show an edge...I'm not going to post the test results here but the results were very nice on daily bars (ER2, ES, US are a few of the instruments tested), it caught trends very nicely, of course you need an exist strategy but that applies to anything, try a 3 point break for starters...

    if you're gonna wait for 10,000 trades to show an edge I'm afraid you'll never put on a trade
     
    #259     Sep 12, 2005
  10. simki

    simki

    hi sunnyskies,

    think base on what NihabaAshi disclosed so far on this BDH setup that is discussed, the pattern is only completed when the dark hammer line is followed by a white WRB that engulfs the body of the interval before the Dark Hammer Line.

    NihabaAshi please confirm, thanks
     
    #260     Sep 12, 2005
Thread Status:
Not open for further replies.