What are HAMMER / hanging man? Why it is very popular when to buy and Sell?

[kanakaraj]

Hammer is a pattern where lower tail should be min two times of it body size. Hammer is in green color. The upper tail should be invisible or very small. Volume should be high during hammer day.

Hanging man is reversal shape of hammer. Here lower tail should be invisible or very small in size. Volume should be high and its red in color.

Both are helpful to know the recent price fall.

 

[KRISHNA KUMAR MS]

HAMMER  –  This is a rare but powerful candle stick BULLISH reversal pattern. This appears at the bottom of the DOWN TREND
This has a small body at the top of the day range with a lower tail at least twice the length of the body. The upper tail is very small or nil. Presence volume on the day of hammer enhances the chance of reversal

Being reversal pattern,  presence of bull candle on the following day alone CONFIRMS the bullish reversal. BUY when the price moves with volume above the top of the hammer.

HANGING MAN Same as hammer but the difference is this is a bearish reversal pattern appearing at the TOP of the trend

These patters are very rare, but if they appear than the chances of the share price going as per the prediction of the Technical analysis is very very high. Hence they are very popular.

[Ravishankar]

The chart will shows the image like hammer and when it comes to reversal than it’s hanging man.

Hammer should appear only after significant price fall.

Lower tile should be min 2 times of body size with no upper tail or minute tail.

Body should be green (Bullish) and high trading volume is expected

 

Hanging Man:

It’s reversal of Hammer where hammer should be in Red (Bearish).

Both are rare formation but powerful hence it was more popular.

[sreevalli]

Hammer is the  bullish pattern, it generally appears at the bottom of recent trend

Hammer lower tail should be atleast two times greater than thne body size

Volume should be high during the hammer day

Body should be green in colour

Upper tail should be invisible or very small

 

Hanging man is bearish pattern, it genreally reversal of bearish pattern

hammer is very rare but when it is seen the price will move up trastically so it is very polpular

[davidrajan]

Hammer is the bullish pattern with bottom high and top invisible or very small

Hanging man is the bearish with top invisible or very small

 

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