Hammer is a pattern which has small body compared to the tail.
For intraday, we will look at 5 min time frame.
It generally leads to trend reversal from downtrend to uptrend but there are some other conditions that should occur for this to happen.
1. Volume should be there.
2. Previous downtrend.
3. Hammer with a good tail.
4. It should not overlap with at least previous 14 bars. For this I use stochastics oscillator.
This pattern formed today in Crisil.
Another trade that I made on Lupin using a hammer pattern.
For intraday, we will look at 5 min time frame.
It generally leads to trend reversal from downtrend to uptrend but there are some other conditions that should occur for this to happen.
1. Volume should be there.
2. Previous downtrend.
3. Hammer with a good tail.
4. It should not overlap with at least previous 14 bars. For this I use stochastics oscillator.
This pattern formed today in Crisil.
Another trade that I made on Lupin using a hammer pattern.
Good post. It was really helpful for the investors of all the beginners . To develop our skills in right place like Share Market Classes in Chennai for the bright future.
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