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

[Divya]

Hammer- When there is a continuous fall in trend then a body is formed with lower tail is two times its body,greenish and the upper tail is little visible then it is called Hammer and it is a bullish.
Hanging man-When there is bullish,then a red body is formed with upper tail is taller then it is a Hanging man(reversal of Hammer).
In both the cases volume is high.
It easily indicates the market,when Hammer is formed buy and when the graph is below the Stop loss point,we have to sell.

[Prakash]

Hammer means : Opening ,closing , And high prices are in More or less Same level
HANGING MAN : Opening , closing and low prices are in More or less same level
Hammer means Bullish trend create long position
Hanging man : Bearish trend create short position

Both cases volume should be high

[Praveen Kumar Ramachandran]

<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>It appears after significant prize fall, with high volume on hammer day. Lowest taill should be two times the body of hammer. Upper tip should be small and if possible invisible.Body must be green if its qualifying as hammer.</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 prize goes above the hammer upper tip.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>It appears after significant rise in prize with high volume on hanging man day. Upper tip should be two times the body of hanging man. Lower tip should be small or invisible. Body must be red in colour.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Sell: When prize start falling below the hanging day lowest prize</p>

[Guru]

<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>After the significant downtrend in the stock, HAMMER appears in green colour.It has very minimum or no high.It closes at the high.This signifies that the uptrend will follow.It is green in colour.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>create long position when the next day of hammer day crosses the high of the hammer day.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>After the significant uptrend in the stock,HANGING MAN appears in red colour.It has very minimum or no low.It closes at the day’s low.This signifies that the downtrend  will follow.It is red in colour.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Create a short position if it crosses the low of HANGING MAN.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”></p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>BOTH THE PATTERNS WILL HAVE HIGH VOLUME ON THE DAY OF OCCURENCE</p>

[Linto Chacko]

Hammer is a bullish candlestick pattern that occurs when a security trades significantly lower than its opening, but rallies later in the day to close either above or near its opening price. It appears after a significant price fall. Its lower tail should be min. 2 times of the body size with no upper tail.

Buy when the price moves above the upper tail of the hammer and exit when it comes to the lowest point of the hammers’ lower tail.

Hanging man is a bearish candlestick pattern that forms at the end of an uptrend.It is created when there is a significant sell off near the market open, but buyers are able to push this stock so that it closes at or near the opening price.

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