- Hammers have a small real body and a long lower shadow.
- Hammers occur after a price decline.
- The 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 indicate a potential price reversal to the upside. The price must start moving up following the ; this is called confirmation.
The study enhances standard pattern accuracy by clearing out market noises and manipulations from the indicator's triggers. Combination of oscillator filter and Index (DMI) components values adjustments allows to detect only strong signals while bands indicator is used to find the safiest signals' closure moments.
The indicator can be applied to trading pairs with USD, USDT, ETH and BTC quote currencies. It is better to check the recent performance on each particular trading pair before apply it. The Indicator supports spot, and marginal trading exchanges. The best performance is obtained while using at 30m timeframe and for scalping signals
Advantages of this indicator:
1. Weak signals and market noises are filtered. This allows to receive only strong and confirmed alerts
2. The indicator includes both
Study with built-in custom alerts to use with your own software through web hook connection.
Strategy with configurable risk management settings (order size, commission, take profit, stop loss and trailing). This provides you opportunity of direct broker connection and allows to conduct backtests before applying the strategy to real account
How to use?
1. Apply indicator to the trading pair your are interested in at 30m timeframe chart
2. Once conditions are met price action candle will be colored yellow and H label will be drawn. Place a long position and wait. The
3. Once price action breaks resistance band, retraces and closes below the band the signal is finished and the position should be closed
When conditions of long or short position from the strategy are met the script opens position.
Strategy.exit closes the position once risk management settings are met.
Strategy.close closes the position once band rejection is confirmed
If you want to obtain access to the indicator please send us a personal message
Feel free to favorite the script, apply it to a chart. If you want to obtain access to the indicator please send us a personal message or leave a comment
Sign up to WhiteBIT and enjoy -40% off on trading commissions: https://cutt.ly/WhiteBIT
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.