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  1. #1
    andylt is offline Newbie
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    Default Hammer candlestick recognition criteria

    Hello,
    babypips school is giving this criteria for recognizing hammer:
    • The long shadow is about two or three times of the real body.
    • Little or no upper shadow.
    • The real body is at the upper end of the trading range.
    • The color of the real body is not important.




    Could somebody explain me 3rd point? The real body is at the upper end of the trading range.


  2. #2
    KingKaivar's Avatar
    KingKaivar is offline Senior Member
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    real body = the fat bit at the top of each hammer. You want it to be located in the upper half of the candle.
    Control your own destiny or someone else will. - Jack Welch

  3. #3
    Richard87's Avatar
    Richard87 is offline Senior Member
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    Quote Originally Posted by KingKaivar View Post
    real body = the fat bit at the top of each hammer. You want it to be located in the upper half of the candle.
    Sorry, I dont agree, ^^ that is rule nr 2, rule nr 3 specifies that this candle is on the top of a swing/trend

  4. #4
    andylt is offline Newbie
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    Quote Originally Posted by Richard87 View Post
    Sorry, I dont agree, ^^ that is rule nr 2, rule nr 3 specifies that this candle is on the top of a swing/trend
    Maybe they had the hanging man in mind, as the hammer can't be on top of the trend, rather in the bottom of it... ?

  5. #5
    Master Tang is offline FX-Men Honorary Member
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    Quote Originally Posted by Richard87 View Post
    Sorry, I dont agree, ^^ that is rule nr 2, rule nr 3 specifies that this candle is on the top of a swing/trend

    It's not up for debate.

    Reread KK's reply to the question. He's right.

    And while you're at it, head back to the school.

    Hammers are at the bottom of a swing low, hanging man candle is at the top of a swing high. But it's the same candle in both instances, just at different points on a chart.

  6. #6
    andylt is offline Newbie
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    Ok, so this sentence: "The real body is at the upper end of the trading range." more or less summarizes these:
    "The long shadow is about two or three times of the real body. Little or no upper shadow."

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