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HAMMER:-
Hammer and hanging man are the reversal of trends
Hammer appears after a gradual decrease in price
Hammer man tail should be two times of the body and head should be small.
One should buy when the price gone passes the high of the hammer and stop loss should be low of that hammer day
Hammer:
The lower tail should be minimum two times of its body size. It should be Green in color.
The upper tail should be invisible or very small in size.
Volume should be high during the hammer day.
Long position can be created when the price crosses the hammer’s high.
Hammer candlestick pattern is a bullish reversal system in technical analysis.The pattern looks like a hammer and has only one candle.It forms in a downtrend and is considered as a market bottom or a support. Long position can be created when it crosses hammers high,
Hanging man pattern is similar to hammer pattern ,It normally forms in an uptrend and it shows the resistance of the market.Short position can be created.
it is trend reversal pattern in which the opening price and closing price is very near by low is much much longer then high . high is very small sure it do look like hammer though. this pattern shows that buyers had potential too go even higher but due to market timing it did not performed to the potential so next day it can go even higher. buy when price passes previous high sell to the low of the hammer . the earning potential is 2x that makes it very attractive
Hammer man is a sign of strength / man with optimism and it is a trend reversal pattern and appears with good volume and it is bullish.
Hanging man is a negative / man with pessimism and it is bearish .
Hammer Man :
Hammer should appear after a significant price fall to effect a trend reversal .
The lower tail should be twice the length of the body with no upper tail or very small upper tail
The body should be green in color ensuring that it opens low and ends in a higher price and it should not be in red.
We can buy the stock today when the price crosses the previous days high price and sell or short close at the lowest of the previous day
Hanging Man :
The body should be red in color, the upper tail should be twice the length of the body and there should be no tail or minimum tail
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