31. How to Trade the Hammer Hanging Man Candlesticks

[shanny76]

Awesome videos Dave, been a great help to me as a newbie. Just wondering if it matters what colour the real body is for hammer or hanging man? If it doesn't matter would I be right in thinking that if the real body was dark with regard to the hanging man and clear for the hammer it would add better confirmation, ie, more bearish or bullish respectively?

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[freeSCALPINGindicato]

Not for scalping...

[FreeFOREXautoROBOT]

Thanks for great video.

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[debobabatunde]

On the last reversal pattern the candle formed is hollow... I thought that would make it a Hammer?

-Ade

[Lafraim]

Tell that to those who made the shorts in 1995.)))

[Lafraim]

The lesson for the losing

[smokenfly514]

I believe you showed a hammer twice..

[smokenfly514]

you constantly speak of buyer or sellers being in control. what do you mean by this? are they literally trying to "take over"? Thanks

[FreeFOREXautoROBOTS]

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[FreeFOREXautoROBOT]

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[airplaneking]

He contradicts himself in this video. The hanging man for the uptrend reversal to the downside is a positive candlestick. (@ 4:33)

[szemingyam]

Great Education, and display example. Keep them coming. Thanks

[TheDjbang]

Candlestick patterns are highly used in intraday trading.

It takes micro skill to read the patterns consistently due to the volatility of the forex market. If you want to know which candlestick timeframe you need to trade you must first define your trading style. Trading on the tick or 1 to 5 min mark to capture 5 to 10 pips = Short term trader or SCALPER. Trading for 20 to 80 pips = Medium term trader.

Trading for 80 or more pips = Long term trader.

Choose style then the pattern that fits.

[vettyarvind]

But it looks like Hanging Man.... Hammer does not have small head/high shadow

[chatowngeek]

it is ok to have small shadow in both hammer and hanging man. Focus on the wick length twice or more(for greater trend reversal) compared to the body

[abedsak]

how is it possible that the next candle opens highr or lower then the last candle? they are spose to be consistent!

[mikziv]

You know, if you are going to have the stones, or the nerve, (or whatever term you want to use) to be putting training videos on the INternet , then maybe you should try getting you act together and present correct and proper materials. Your visual presentation cinflicts with what you are saying. Get your head out of your ass... forex trading is confusing enough without some jackass like you to make it even more confusing. you asshole.

[275atlantis]

mikziv should not get into trading of any kind

[TheTadej]

hello... ...there is misatake: Hammer is found in Downtrend (not uptrend). Am i right? or i'm not good student...bye...tadej

[ndtv501]

when to enter a hammer trade ?

a) on the break off high on the day of hammer

b) on hte reversal to the low of hammer

c) or any thing else

[kedmania]

does it matter what colour the hanging man or the hammer is?

[InformedTrades]

Hey Kedmania,

 It does. In this video the hollow candles are up candles and the shaded ones are down candles.

-Brendan

[kedmania]

i actually meant, does it matter if the hammer or hanging man is positive (up) or negative (down) candles? After looking at the video closer i can see that the hanging man you show is actually positive and therefore answers my question that it doesn't matter a long as the candles have the hanging man shape. Although i guess if the hanging man is negative then it is even more likely to go down the next day because it has already started the down trend and broken through some resistance.

[Learning2Trade]

I recently encountered a stock that formed a hammer in a down trend... the shadow was extremely long i investigated the days minute chart and saw that it was a single trade at 10:09am that forced it down and it recovered to its previous price at 10:10am on low volume does this affect the hammers validity? market maker?

[lostinreallife]

Hi Dave, Your videos are FANTASTIC! I can't stop watching. You are a super teacher extraordinaire!

I have 2 questions:

- In the Trading the Hanging Man Chart (at 5.39), is the Hanging man supposed to be in white or black?

- If the volume is not up on the Hammer/Hanging man, but up on the following candlestick, does it still count as a confirmation?

Thank you :)

[InformedTrades]

volume and stochastics.  Best Regards, Dave

[wojtek0000]

under The Hammer it should read "a reversal pattern when found in a downtrend."

[InformedTrades]

thanks for the correction there and my apologies for the mistake. Best Regards, Dave

[wojtek0000]

thank you for these insightful videos. you're a good instructor.

[InformedTrades]

thanks for the comment and for watching I am glad you like them. Best Regards, Dave

[InformedTrades]

Thanks for the comment and for watching I am glad you like the video. Most traders agree that these chart patterns will work on any timeframe, however the longer the timeframe the pattern shows up on the more relavence a trader will normally give it. Best Regards, Dave

[InformedTrades]

I am going for the superhero one outfit look;-) Best Regards, Dave

[AM2M]

Thank you for your good genuine advice to trader, unfortunately most sites give new traders just enough info to hang themselves and go broke

[InformedTrades]

Hi AM2M, Thanks for the comment and for watching I am glad you like the videos. Best Regards, Dave

[atlas10]

the video was great, but you made a mistake, the hammer appears on downtrend not uptrend, uptrend is a hanging man like the one you show.

[InformedTrades]

Hi Atlas10. thanks for the comment I am glad you like the video. Also thanks for pointing out that mistake will fix that in the next version. Best Regards, Dave

[atlas10]

not a problem and thanks for your insights!

[coinjoin]

Hi..first of all thanks for sharing.

Im currently using IGindex as my platform (broker)..they have tons of indicators to use and to help with trading..but the one they don't seem to have is the volume indicator..could anyone recommend a good broker who does?...which one are you using when you showed this particular video?... many in advance.

[InformedTrades]

hi coinjoin, thanks for the comment. What market are you trading with IG Index? If you are trading forex then you are not going to get volume info on that. The reason being is that the forex market is over the counter so there is no volume information reported. To get around this some traders use FX Futures volume as an estimate. I am using Prorealtime charts in the video. Best Regards, Dave

[InformedTrades]

hi Percy3687, Thanks for the comment. What makes the hanging man significant is the short upper body and long lower wick. So with this in mind because a black body would represent a close which was lower than the open a black body is preferable. A candle with a white body which fits the pattern can still be considered a hanging man as well however. Best Regards, Dave

[eburgon]

Hi David. I wanted to tell you what a great job you're doing. I frequent your site daily & read, very carefully, everything you publish. I READ so carefully in fact that I found a small discrepancy between the PPT slide about the hammer & the transcript of this vid. This comment is not meant to criticize, just inform & I hope everyone who reads this will try to find what I found & your play-count will go through the roof!

Kind regards,

Eburgon

[InformedTrades]

Hi Eburgon, Thanks for the comment I'm glad you like the videos and don't worry I am not sensitive to people pointing out mistakes in fact I encourage it. Once people have had a chance to go through and try and find the mistake and hopefully get me some more views;-) I'll fix it up in the next addition of the video. Best Regards, Dave

[aasyraf]

Hi Dave

I think what he meant was at 2:00.

It says the white hammer is a reversal pattern when found in an uptrend, but the next immediate example is actually a reversal after a downtrend. Correct me if Im wrong please. Thanks!

Regards

aasyraf

[InformedTrades]

Hi Aasyraf, Yes you are correct I accidentally used the same slide for both the hammer and the hanging man so I say it correctly but the picture before the chart example should say downtrend. I will correct in the next version of the videos. Best Regards, Dave

[jamalt68]

This is also good tips from you. I do start following your video lessons.

[InformedTrades]

Thanks again for the comment jamalt68. I really appreciate the feedback please keep the comments coming. Best Regards, Dave

[Schweizer135]

Does the hammer need to be white and the hanging man black? Thanks!

[InformedTrades]

Hi Schweizer135, Good question. The hammer does not have to be white (as the close near the high is bullish regardless of whether it is higher than the open) but if it is (showing that the market closed higher than it opened) then this is slightly more bullish than if its black. Same goes with the hanging man. It does not have to be black but if it is then it is slightly more bearish. Let me know if there are any other questions. Best Regards, David

[mujeebyzai]

THanks. Great vid.

[InformedTrades]

Hi Mujeeebyzai, Thanks for the feedback i am glad you liked it. Good luck with your trading.

Best Regards, David