Technician

Watch This Candle: #AUDJPY Hammer Weekly | #FOREX

FX:AUDJPY   Australian Dollar/Japanese Yen
Introducing another posts type named " Watch This Candle", I will try to spot and explain the main important candlesticks patterns. I wish you like it. If you do please comment and agree so i continue...
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Candlestick Pattern: Hammer
Prior Trend: Down
Implications/Use: Bullish reversal, Bullish correction, good for scalping

Introduction
One of the most powerful tools in gauging shifts in market balances, the hammer candlestick pattern is one of the patterns I personally find extremely useful in the process of determining trend reversals.

Definition
There are plenty of candlestick patterns; however the hammer is of the most illustrative.
Hammer candles form when a security moves sharply lower after the open, but rebounds to close significantly above the low of the session.

The shape

The Hammer has a long lower shadow with a small body, the lower shadow should at least be double the size of the body, and the body can be green(up) or red(down), however through my experience I find the ones with green body more reliable.

The Hammer should be preceded by a clear downtrend or at least several down days.
Note: breakouts below the low of the hammer usually lead to further bearish movement, and confirms bearish continuation.
$$ It's strongly recommended to always use candlestick patterns in conjunction with other technical tools to increase the chances of success. For example, a hammer near a support level or the 50-days Simple Moving Average .
Note: breakouts below the low of the hammer usually lead to further bearish movement, and confirms bearish continuation
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Time to open the high yield yearly carry trades again?
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Technician TOP IvanLabrie
Possible. but honestly i don't bother with speculating on fundamental themes. I look at this candle as a good short term technical bounce signal, and look to benefit from reactive bounces.
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IvanLabrie PRO Technician
This year I will open a separate account for intraday, vs the one I'm using for position trading...so these fundamental events combined with technical elements are important for my approach. But yes, you can trade using technical elements alone in general.
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Technician TOP IvanLabrie
Yeah, there are an infinite number of ways to trade.
+1 Reply
I agree! Please continue!
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Hey!
I think it should continue to go down trend?
see the picture I publish!
so wave 5 and C are done, I think!
AUDJPY
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Could be the case, this is not intended to be a forecast post, its just an educational piece. When i publish a trade its clearly outlined with potential direction.
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Good learning experience for me, because I just started studying Japanese Candlestick. I did not know that It is a reliable indicator on weekly chart and I also thought that the Hammer and Shooting star pattern was more reliable closer to support and resistance.
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Yes absolutely.. If it occurs near a support or resistance it would be better. I am just explaining the "candle" here, without any other technical tool.
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Japanese candlestick powerful daily and weekly light signal?

than harmonic trader?

how large ratio Winning% on only candlestick signals on a daily light?

curious!
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I think that its powerful across higher timeframes, starting from four-hour and above... Dont know about the percentage, but i have long experience with daily hammers, i believe they get more then 70% especially if combined with other technical tools
+1 Reply
nappenbir Technician
thanks it is great pleasure to know light signals provides over 70% winning! neat! then I will follow the daily light!

harmonious fibonacci provides approximately + 70% is said to be so!


many thanks!
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BTW, this is a rough guess, its not accurate its only based on my experience.
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Ur welcome
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nappenbir Technician
thanks you! i follow you!
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Hi technician, on a daily/intraday base it could really be an upside trade.
But when i look back, it actually looks like a struggling hanging man on the way down? perhaps i am wrong
Ouch, feels like my balls are about to get squeeze hard LOL
snapshot
+1 Reply
Will Wong jangseohee
Hangman are shaped like a hammer but appear at the top of an uptrend and bearish but less so than a shooting star.
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Jangseohee.. You shouldn't take single candlestick patterns like hanging man or hammers in isolation. In fact never take candlesticks in isolation. Look at support/resistance levels where they appear. That is when they are the most powerful. If you want to practice candlesticks & S/R, I suggest you do some demo trading with Nikkei225. Its by far the best asset I have seen that brings many candlestick patterns (both successful & failed).
+1 Reply
Technician TOP justatrader
Totally agree abt taking candles in isolation.. Always use this tool along with other tools. This post is just meant to be an explanation of the hammer candle.. I am adding to the description this part, thanks for reminding me justatrader..
+1 Reply
short @ 98.00?
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lets wait for Technician to explain
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The shooting star has the opposite shape as a hammer. That means the upper shadow is very long and more than twice the length of the small body. Which means that during the course of the trading session, the vehicle traded much higher than the open but then closed much lower and closer to the open. It is bearish since sellers are in control towards the close. I agree that candles are a very useful indicator of short term turning signals. Please continue. It would be very useful if we can help to spot turning candles. Both the DOW and the SPX printed bullish engulfing patterns today which is one of the strongest turning signals.
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Thanks will continue, I will post another post for the shooting star candle..
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Barabaszek Will Wong
snapshot
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jangseohee Barabaszek
it see it as piercing, but its ok
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Hammer, shooting star, candlestick patterns in general is music to the ears :D
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jangseohee justatrader
it does have significant
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I will remove the shooting star part of this post, and post a totally different post on shooting star. But basically its the opposite.. Always use candlestick patterns in conjuction with other technical tools to enhance your chances...
+1 Reply
jangseohee Technician
100% agree using candlesticks MUST be coupled with other weapon :-)
+1 Reply
i like...
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Hi Technician, your posts are always interesting thanks for that.
Most publications document the hammer ratio (wick/body) 3:1, I usually pay attention more to the speed the candle forms its wick.
For example a red weekly hammer with less than 3:1 ratio that forms it’s wick in the first day of the week and it’s daily lows and highs keeps ranging within the body for the rest of the week is more reliable to me than a green 3:1 hammer that price was ranging between its high and low for the whole week.
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Technician TOP NidalDarawsheh
Great input thanks, Agree that the hammer should have a 3:1ratio or more, and i also prefer green hammers for the bullish case. In terms of intra-candle movement, I dont give too much weight to that, but i slightly prefer hammers that start the week lower and end the second half of the week higher, and apply that to all timeframes.
+1 Reply
Hi!

I want ask you .. what you think here AUDJPY can continue go downtrend haromic fibonacci 76.8% this is very good! i want sell here when here market is open!
AUDJPY
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I cant tell you, coz you might be right and i might be wrong, there is nothing for sure in trading.. But for me, i am bullish on AUDJPY
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Technician TOP Technician
for the short term
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Otinanai638. Technician
snapshot
i am bullish too
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