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

[canute]

 

Hammer is a Bullish Pattern Reliable Powerful & rarely appears, Hammer lower tail should be minimum tow times of its body size, Body should be green in colour, should not be red, The upper tail should be invisible small in size,volume should be high during hammer day, Buy only above point “A”, stop loss below point “B”. Hangman is generally reversal pattern.

[vasanth]

recent price fall followed by a green color hammer which is characterized by  a lower which us double the body invisible or negligible upper tile  and high volume .

Buy at the highest price of the hammer.

Stop-loss at the lowest price of the hammer.

Sell; difference between the buy and stop-loss above the sell price

 

Reversal pf hammer is hanging man:

Entry: at the lowest  price of the hanging man

Stop-loss: highest price of the hanging man

Buy: difference between entry and stop-loss below the entry point

[Ranjani Arumugam]

Hammer

1. Powerful

2. If after a significant price fall, expect a price reversal

3.lasts for 3 to 4 days or less than a week, so for weekly traders

4.Has a green colour body with a tail 2 times that of the body

5. Small upper tail

6.Volume high on Hammer day

7. Long position – buy next day (Entry) if price goes higher than the highest point of the hammer  smallupper tail

8. Stop loss- the point lowest of the lower tail

9. Target- Entry  minus  stop loss into x 2 times or 1.5 times

 

Hanging man

1/ Opposite of Hammer

2. Body Red in colour

3. upper tail 2 times body

4. lower tail small

5. high volume

6. If seen after significant price rise expect a trend reversal to a bearish trend.

7. Entry –  next day price above the upper tail

8. stop loss- price at end of lower tail

9. target Entry – Stop loss x 1.5 times to 2 times

10. time – 3 to 5 days for weekly traders.

[Aravind S]

<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Recent price fall followed by a green color hammer which is characterized by  a lower tail which is double the body,and  invisible or negligible upper tile  and high volume .</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Buy at the highest price of the hammer.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Stop-loss at the lowest price of the hammer.</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Sell; difference between the buy and stop-loss above the entry price</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;”>Reversal pf hammer is hanging man:</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Entry: at the lowest  price of the hanging man</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Stop-loss: highest price of the hanging man</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Buy: difference between entry and stop-loss below the entry point</p>

[Denis]

Hammer pattern are reliable rarely appear when appear after a price fall with top tail which is very low and bottom tail should be minimum 2 times the size of body, along with high volume and green indicates the strength of buyer in the market Its an bullish indicator.

Hanging man are reliable rarely appear when appear after a price high or lower with bottom tail which is very low and top tail should be minimum 2 times the size of body, along with high volume and red color indicates the strength of seller in the market Its an bearish indicator.

[Author]

Posts