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Tagged: Hammer, Hanging man
Hammer is a trend reversal pattern with a bullish look.
Hanging man is similar to Hammer pattern with bearish look. It forms an uptrend and it shows the resistance of the market.
The hammer is a bullish pattern and one should look at buying opportunities when it appears
Hammer lower tail should be minimum two times of its body size.
Hammer should be green in color.
Upper tail should invisible or very small in size.
Volume should be high during Hammer day.
The hanging man is a bearish pattern which appears at the top end of the trend, one should look at selling opportunities when it appears
Hammer- After a price fall, A green candle with long lower tail (twice as long as body), very small upper tail and high volumes.
Hanging man- After a price rally, a red candle with long upper tail(twice as long as body), very small lower tail and high volumes.
Hammer- Entry- High of hammer. SL-Low of hammer.
Hanging man- Entry- Low of hanging man. SL- High of hanging man.
Hammer is a candlestick pattern in which the open and close price are near to highest price. The bottom tail is longer.
Long position: Buy when price is more than previous top, sell at exit price.
Hanging man is a candlestick pattern in which the open and close price are near to lowest price or highest price. It is filled with dark colour which indicates higher close price.
Short position: Sell when price is lower than previous bottom, buy later.
Hammer and hanging are trend reversal patterns
when a candlestick has very big lower tail (twice as big as body) with open and close near to the highest it is hammer. It indicates bullish. Buy at high point of hammer. SL at lowest.
when a candlestick has very big upper tail(twice as big as body) with open and close near to the lowest it is hanging man. It is bearish. Sell at lowest point. SL at highest point of hanging man
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