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

[Shantanu]

its a frequently observed pattern which also indicates a pattern reversal with change in color of the candlesticks.
Hammer usually is indicative of Bullish trend and Hanging man is of Bearish trend.
One can buy when the prices go above the upper tail of current day’s body and the stoploss can be set at today’s low.

[Aruna]

Hammer appears only after a significant price fall and it is trend reversal

Buy- if price goes above the upper tail of hammer body

Sell-if price goes below the lower tail of hammer body

[monish kumar]

when after a good continious fall for certain days suddenly one day a green body with tail two times of the body and head is invisible/very short then it ensures that the selling pressure gone and buyers are started entering into the market.so this is strong indication to BUY after a continious fall.it is called as HAMMER.

same like viceversa in hanging man.

[satish katwate]

<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Hammer/ Hanging man is a trend reversal pattern.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Since this is a very powerful pattern and the returns are more than the risk (usually 1:2), this is very popular.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Buy – When the price goes above the hammer’s high or hangman’s low or stop loss</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Sell – When the price goes below the hammer’s low or hangman’s high or stop loss</p>

[vishal]

Hammer – Buy at hammer high,
Hanging man – short at hammer low,

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