3.2.3 · HinglishCandlestick Patterns

Understand hammer and hanging man

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3.2.3 · Stock-Market › Candlestick Patterns


YEH patterns HAIN kya?

Figure — Understand hammer and hanging man

YEH shape reversal kyun suggest karta hai? (First-principles se samjho)

Chalo is pattern ko memorise karne ki jagah raw price action se build karte hain.

Ek candle ek session mein char prices record karta hai: Open (O), High (H), Low (L), Close (C).

Step 1 — Lamba lower shadow kaise banta hai? Low , body se kaafi neeche hota hai. Matlab kisi point par sellers ne dominate kiya aur price ko tak neeche ghaseet liye. Yeh step kyun? Lower wick literally woh "doori" hai jitni sellers push kar paaye.

Step 2 — Top ke paas chhota body kaise banta hai? Close , High aur Open ke paas aa gaya. Toh tak gir jaane ke baad, price almost puri tarah wapas aa gayi. Yeh step kyun? Agar hai, toh buyers ne session jeet liya — unhone poori sell-off ko absorb kar liya.

Step 3 — Ise ek rule mein convert karo. Define karo:

Pattern tab confirm hota hai jab:

Yeh step kyun? Body se do guna wick prove karta hai ki session ke andar reversal strong tha, koi random wobble nahi.

Step 4 — Same shape, ulta context.

  • Downtrend ke baad: yeh "buyers ne price rescue ki" wali kahani batati hai ki down-move thak raha hai → Hammer (bullish).
  • Uptrend ke baad: rally mein pehli baar sellers price ko kaafi neeche push kar paaye — bhale hi buyers ne recover kar liya, lekin crack aa gayi hai → Hanging Man (bearish).

Ise TRADE / READ kaise karein (practical rules)

  1. Pehle trend locate karo — trend nahi, signal nahi. Context hi sab kuch hai.
  2. Ratio aur near-zero upper shadow check karo.
  3. Agla candle dekhkar confirmation lo:
    • Hammer → agla candle upar close kare (buyers follow through karein).
    • Hanging man → agla candle neeche close kare (sellers ley over karein).
  4. Body ka colour minor hai; ek green (bullish) hammer aur ek red (bearish) hanging man thoda zyada strong hota hai, lekin shape + location zyada matter karta hai.

Worked Examples


Common Mistakes


Recall Feynman: 12-saal ke bacche ko explain karo

Socho tum tug-of-war khel rahe ho. Rope "down" side ki taraf bahut zyada khiich jaati hai (lamba lower wick) — lagta hai down team jeet rahi hai! Lekin achanak "up" team whistle se pehle rope ko almost poora wapas kheench leti hai (upar chhota body). Yahi comeback poori kahani hai.

  • Agar yeh tab hota hai jab up-team kaafi time se harti aa rahi thi → shayad ab woh finally recover kar rahi hai (hammer, up ke liye good news).
  • Agar yeh tab hota hai jab up-team kaafi time se jeet rahi thi → uh oh, down team pehli baar achanak strong ho gayi (hanging man, up ke liye bura sign). Same tug-of-war picture, lekin kab hota hai yeh decide karta hai ki yeh kis cheez ki warning hai.

Flashcards

Hammer/hanging man shape ko define karne wali do features kya hain?
Range ke top ke paas ek chhota real body aur ek lamba lower shadow (≥2× body) aur bahut kam/koi upper shadow nahi.
Hammer aur hanging man mein SIRF kya fark hai?
Preceding trend — hammer downtrend ke baad (bullish), hanging man uptrend ke baad (bearish).
Shadow-to-body ratio condition likho.
with near-zero upper shadow.
O=102,H=103,L=94,C=101 ke liye, kya yeh valid hammer hai?
Haan: body=1, lower shadow=7, R=7≥2, tiny upper shadow → valid (aur downtrend mein = hammer).
Hammer bullish reversal kyun suggest karta hai?
Sellers ne price ko bahut neeche dhakela lekin buyers ne close tak almost saari losses wapas le lein, yeh signal karta hai ki selling pressure thak raha hai.
Hanging man bearish kyun hai jab price recover ho jaati hai?
Uptrend mein, sellers pehli baar price ko kaafi neeche le ja paaye — buyer control mein ek crack jo top ki warning deta hai.
Hammer signal ko kya confirm karta hai?
Agla candle upar close kare (bullish follow-through).
Kya body colour pattern decide karta hai?
Nahi — shape aur trend location decide karta hai; colour sirf read ko thoda strengthen/weaken karta hai.

Connections

Concept Map

defines

measured by

valid if

proves

after downtrend

after uptrend

signals

signals

determines meaning

confirmed by

confirmed by

Candle: O H L C

Small body top + long lower shadow

R = Lower Shadow / Body

R >= 2 and upper shadow ~ 0

Sellers pushed down, buyers recovered

Hammer

Hanging Man

Bullish reversal

Bearish reversal

Trend context

Next candle closes higher

Next candle closes lower