Because it "hammers out" a trend's bottom, the Hammer is named. It is a downward trend. The Hanging Man, which resembles a hanging person, occurs in an uptrend. Both candlesticks indicate a trend reversal or correction.
How to trade with Hammer and Hanging Man MT4 indicator?
There are several principles for pattern recognition.
1. It doesn't matter what color the candlestick is made of.
2. The shadows should be at least two- to three times longer than their bodies.
3. A candlestick is not likely to have an upper shadow. However, a candle that looks like a Hammer or Hanging Man but has a small shadow above it could be a Sword candle. A different strategy is employed.
Hammer and Hanging Men MT4 indicator can be used for any currency pair, and at any time. The signal is less reliable the longer it takes to work.
A red or green dot will be displayed if a candle passes the pattern recognition criteria after it has closed to indicate a bullish or bearish signal.
To confirm the signal, you could also add any trend indicator such as Trend envelopes to the chart.
Like the indicators and want to try them out? Do it with an AtoZ Approved broker for free:
How to Install Hammer and Hanging Man MT4 indicator
How to install your indicator on the MT4 platform:
1. Click on Download button below;
2. Save the file to your computer;
3. Move the .ex4 file into the following folder: meta traderexpertsindicators;
4. Restart your Metatrader platform;
5. Click the “Indicators” button in Metatrader toolbar;
6. Select “Custom”;
7. Search and select “Hammer and Hanging Man”;
8. Adjust settings or press OK to add the indicator to your selected chart;
Note: Hammer and Hanging Man MT4 indicator is developed by Instaforex and was sent by an AtoZ Markets follower from the United States, Tim. AtoZ Markets does not carry any copyrights over this trading tool.
Should you use the Hammer and Hanging Man MT4 indicator on your own at all?
Before you start using this indicator, you'll want to read this.
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