This indicator will automatically detect Hammer & Hanging Man candlestick pattern.
Hammer and Hanging Man are two candlestick patterns share the same shape of bar. By definition, a hanging man is a bearish reversal pattern and hammer is a bullish reversal candlestick pattern. Both of them have a long lower wick and a short body at the top of the candlestick with little or no upper wick.
The only difference is that the Hammer appears at the bottom and Hanging Man appears at the top of a trend.
This indicator is able to detect both Hammer and Hanging Man.
Features and inputs.
Candle Type, this input controls the type of Candlestick, you can choose from: Bearish, Bullish and Any.
If you chose Bearish, the indicator will check if the bar is a bearish bar which means Close less than Open.
If you chose Bullish, the indicator will check if the bar is a Bullish bar which means Close greater than Open.
If you chose Any, the indicator will not check the bar type.
Pattern Type, there are 3 options: Top, Bottom and Anywhere.
If you chose Top, it's actually the Hanging Man, the indicator will check if the bar has the highest price within the given number of bars from the 'Trend range' input.
If you chose Bottom, it's actually the Hammer, the indicator will check if the bar has the lowest price within the given number of bars from the 'Trend range' input.
If you chose Anywhere, the indicator will not check the above 2 conditions.
Upper Wick, there are 3 options: Yes, No and Both.
If you chose Yes, the indicator will check if the bar has Upper Wick. In other words, the pattern bar must have Upper Wick.
If you chose No, the indicator will check if the bar doesn't has Upper Wick. In other words, the pattern bar must not have Upper Wick.
If you chose Both, the indicator will not check if the bar has Upper Wick. In other words, the pattern bar can be either with or without the Upper Wick.
Lower Wick Multiplier, this input will check if the lower wick is longer than the candlestick body by the times of Multiplier. For example, when using 2, it will check if the lower wick is at least 2 times longer than the candlestick body.
Trend range, as mentioned above, it's used to check if the pattern bar has either the highest price within the given number of bars, or has the lowest price within the given number of bars from the 'Trend range' input. This input will not work if Pattern Type=Anywhere.
For example, when using Trend range=30 and Pattern Type=Bottom, the indicator will check if the bar has the lowest low within past 30 bars.
Enable HighLight, when enable this input, the indicator will highlight the pattern bar with the HighLight color.
Enable Alert, when enable this input, the indicator will send sound alert whenever a patterns is found.
Sound Alert File, you can choose any sound file from the list.
This website is for educational and informational
purposes only and should not be considered a solicitation to buy or sell a
futures contract or make any other type of investment decision. It's not recommended to use any single indicator as sole evaluation criteria. The companies
and services listed on this website are not to be considered a recommendation
and it is the reader's responsibility to evaluate any product, service, or
company. patternsmart is not responsible for the accuracy or content of any
product, service or company linked to on this website.
contains substantial risk and is not for every investor.Please read the following risk disclosure before considering the
trading of this product:
Futures Risk Disclosure. An investor could
potentially lose all or more than the initial investment. Risk capital is money
that can be lost without jeopardizing ones financial security or life style.
Only risk capital should be used for trading and only those with sufficient risk
capital should consider trading. Past performance is not necessarily indicative
of future results.
Trading stocks, options, futures and forex involves
speculation, and the risk of loss can be substantial.Investor must consider all
relevant risk factors, including their own personal financial situation, before
trading. Trading foreign exchange on margin carries a high level of risk, as
well as its own unique risk factors. Forex investments are subject to
counter-party risk, as there is no central clearing organization for these
transactions. Please read the following risk disclosure before considering the
trading of this product:
Forex Risk Disclosure. Spreads, Straddles, and other multiple-leg option
strategies can entail substantial transaction costs, including multiple
commissions, which may impact any potential return. Options are not suitable for
all investors as the special risks inherent to options trading may expose
investors to potentially rapid and substantial losses. Prior to trading options,
you should carefully read
Characteristics and Risks of Standardized Options.
will not be held liable for the loss of money or any damage caused from relying
on the information on this site. Any investment decision you make in your
self-directed account is solely your responsibility.