Hammer Long strategy with filtered and enforced alerts

A Hammer Long strategy is a price pattern in candlestick charting that occurs when a security trades significantly lower than its opening, but rallies within the period to close near opening price. This pattern forms a hammer-shaped candlestick , in which the lower shadow is at least twice the size of the real body. The body of the candlestick represents the difference between the open and closing prices, while the shadow shows the high and low prices for the period.

Key takeaways:
  • Hammers have a small real body and a long lower shadow.
  • Hammers occur after a price decline.
  • The hammer candlestick shows sellers came into the market during the period but by the close the selling had been absorbed and buyers had pushed the price back to near the open.
  • The close can be above or below the open, although the close should be near the open in order for the real body to remain small.
  • The lower shadow should be at least two times the height of the real body.
  • Hammer candlesticks indicate a potential price reversal to the upside.

    The strategy enhances standard Hammer pattern accuracy by clearing out market noises and manipulations from the indicator's triggers. Combination of Volume oscillator filter and Directional Movement Index (DMI) components values adjustments allows to detect only strong signals. The strategy is developed to forecast Long positions entries and exits. The strategy supports spot, futures , options and marginal trading exchanges. It works accurately with BTC , USD, USDT, ETH and BNB quote currencies. Best to use with 30 and 60 minutes timeframe charts. The strategy can be and should be configured for each particular asset. You can change filters and risk management settings to receive the most advanced accurate alerts

    Advantages of this script:
    1. Weak signals and market noises are filtered. This allows to receive only strong and confirmed alerts
    2. Strategy can be easily configured in user interface for each particular asset
    3. High performance. At the chart you can see examples of strategy entries and exits, you also can check strategy backtest for RENUSDT position:
  • Net profit: 26.95%
  • Percent profitable: 90%
  • Profit factor: 7.418
  • Duration of trade: 16 hours
How to use?
1. Apply indicator to the trading pair your are interested in at 30m or 60m timeframe chart
2. Configure the strategy: change filters values and risk management settings until Strategy tester shows good results according to mathematical expectation
3. Set up a TradingView alert to trigger when Hammer strategy conditions are met
4. Strategy will send alerts when to enter and when to exit positions

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Script que requiere invitación

El acceso a este script está restringido a los usuarios autorizados por el autor y, por regla general, es de pago. Puede añadirlo a sus favoritos, pero solo podrá usarlo si solicita permiso al autor y éste le autoriza. Póngase en contacto con SkyrexTrading para obtener más información o siga las siguientes instrucciones del autor.

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