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Hammar is should be in green colour.
On top of body tail should be very low and bottom of body tail should be large.
And volume should be high.
On top of hammer we buy and at bottom of hammer we sell.
It represents a significant trend reversal if the volume is high.
Trade duration : 3-4 days.
Hammer : Buy @ hammer high , stop loss – hammer low
Hangman : Sell @ hangman low , stop loss – hang man high
It represents a significant trend reversal if the volume is high.
Trade duration : 3-4 days.
Hammer : Buy @ hammer high , stop loss – hammer low
Hangman : Sell @ hangman low , stop loss – hang man high.
The hangingman and the hammer are both candlestick patterns that indicate trend reversal. The only difference between the two is the nature of the trend in which they appear. If the pattern appears in a chart with an upward trend indicating a bearish reversal, it is called the hanging man. If it appears in a downward trend indicating a bullish reversal, it is a hammer.
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Hammer/ Hanging man is a trend reversal pattern.
Since this is a very powerful pattern and the returns are more than the risk (usually 1:2), this is very popular.
Buy – When the price goes above the hammer’s high or hangman’s low or stop loss
Sell – When the price goes below the hammer’s low or hangman’s high or stop loss
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