Trading Hammers (revisited)

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

  1.  
    #31     Jul 30, 2005
  2. Hi jgadefelth,

    First, get some books on Japanese Candlesticks (any will do).

    Hammer information in those books is an excellent pattern to start learning and concentrating on for about a year.

    It's a pattern that has enough sub-groups that keeps a trader busy and active.

    In fact, I know some traders its the only Japanese Candlestick pattern that they use with whatever primary trade method they have.

    Also, some of the stuff I discussed in this thread are not found in any candlestick book so use it as supplemental trading tips.

    Yes...there are stronger patterns but such will not be discussed in this thread.

    Most are customized or discovered by advance traders using Japanese Candlesticks (most likely not found in any books).

    A good way to learn is to post charts of what you consider to be Hammer patterns and ask questions about your charts as a few have already in this thread.

    Also, as I already mentioned in this thread...

    If your not willing to do live-recordings of the price action on your charts...

    Learning and understanding the price action that involves the Hammer pattern or any other pattern not involving Japanese Candlesticks can be very difficult and frustrating.

    NihabaAshi
     
    #32     Jul 31, 2005
  3. NihabaAshi

    I have read books from Nison about candlepatterns, but then i did not think of them as so good maybe I should just stick to the hammer pattern.

    The thing about hammerpaterns that I think you mmean that I should learn is that the hammerpattern is a reversal signal in an reversal mayba and after it the main trend will continue. The hammer close higher than it oepn and that is a up signal.

    If not here where can we start a new thread that conserns all the intresting candlepatterns?

    Regards
     
    #33     Jul 31, 2005
  4. #34     Jul 31, 2005
  5. Hi jgadefelth,

    Yes...I highly recommend starting with and sticking with Hammer patterns and their sub-groups...

    Especially since you don't have a trading plan and this will allow you spend most of your efforts developing your trading plan without having too much on your plate at the same time via trying to learn Japanese Candlesticks.

    Then...only then after you developed your trading plan...

    Start learning about Hammer patterns.

    Yes...Hammer patterns are reversal signals but can occur as continuation signals as you've already seen in one of the chart examples...

    http://www.elitetrader.com/vb/attachment.php?s=&postid=802602

    The same can be said about any other type of reversal signal.

    Reason why traders that get fixated on trying to trade the trend (ignoring reversal signals because they think such is going against the trend)...

    Are actually missing many trade signals that do trade with the trend because those trade signals have dual signals (reversal and continuation).

    Therefore, trend trading for these types of traders can either be boring or frustrating.

    As for talking about other candlestick patterns...

    The main reason why I don't want to talk about other candlestick patterns in this thread eventhough someone else can (I just will not reply to it) is because I've been at ET long enough to see such usually dilutes the Hammer discussions and lead to other type of discussions that has nothing to do with Japanese Candlesticks nor about the price action that leads into a particular candlestick pattern.

    Therefore, if you have questions about other candlestick patterns or anything to do with price action only trading and want my input...you can either send me a private message or email me.

    Also, you can start another thread (I'll reply as long as it has nothing to do with stocks) via just click the Start a New Thread at the below link.

    http://www.elitetrader.com/vb/forumdisplay.php?s=&forumid=33

    NihabaAshi
     
    #35     Aug 1, 2005
  6. July 29th Friday

    Eurex Equity Index Derivative - DAX

    Bullish White Hammer Pattern

    Example of converting a profitable day trade via scaling out some contracts at a profit and letting it ride on a remainder as a swing trade.

    NihabaAshi
     
    #36     Aug 1, 2005
  7. A couple of questions of interest:

    1. Your chart shows [15] as your time interval but it is actually a 5-min chart (at least according to my charts). Does that [15] represent the time interval or am I incorrect in that assumption?

    2. It looks like that position was taken at 19:45 CET (just 15 mins before the close). However, the profit targets for exits were taken during the European morning session. Do you trade all day and all night or is this an automated process (or are you using child labor :) )?

    I was referred to this thread from the "Do you short term traders...." thread and have not read through the many pages here on the original Hammers thread, so excuse me if this has already been covered.
     
    #37     Aug 1, 2005
  8. Hi FuturesTrader71,

    Answer 1: The chart interval is shown in the lower right corner of the chart.

    Answer 2: Most of my trades are day trades...averaging about 3 trade signals per day depending upon the trading instruments I'm following that particular day.

    I don't get too many swing trade signals via the Hammer pattern...a few of them per month depending upon the trading instrument.

    I don't use an automated system (mechanical system).

    Further, the few times I do a swing trade or day trade during European hours...

    I keep my mornings short and call it quits (stop trading) by 11am est.

    Example...if I'm day trading the DAX at 3:15am est...

    I'm usually done by 11am est.

    The times I do trade the DAX (not my most traded trading instrument)...

    I usually only trade it from 3am - 4am est.

    I then go back to bed and will wake up to see how it is doing around 0815am est if there's a 0830am est key econ report...

    If not...I stay in bed as long as possible (toddler has more control about this than you can imagine) :mad:

    However, if I did a swing trade (overnight hold)...one of my rules for such is that I must have bank some profits either by the close or prior to going to bed and I keep a stop on the remainders as mentioned in that prior thread "Do you short term traders...".

    NihabaAshi

     
    #38     Aug 1, 2005
  9. NihabaAshi,

    Thanks for the reply. I was wondering if you have a particular post, thread or journal that explains your most common setups and your style. You have a lot of posts and it would take a lot of time to get to the basics. Can you point me to the right place so I can get some background?

    Thanks.
     
    #39     Aug 1, 2005
  10. Hi FT71,

    I just sent you a private message that answers your question.

    NihabaAshi
     
    #40     Aug 1, 2005