Hammer and Hanging Man MT4 indicator helps traders to identify Hammer and Hanging Man candlestick formations. Both formations consist of a single candlestick. They have rather long lower shadows and small real bodies. The Hammer was named so because it “hammers out” the bottom of a trend. It occurs in a downward trend. While the Hanging Man resembles a hanging man and occurs at an uptrend. Both candlesticks signal a correction or trend reversal.
How to trade with Hammer and Hanging Man MT4 indicator
We have several principles of pattern recognition:
1. The color of the candlestick’s body is irrelevant.
2. The lower shadow should be two to three times longer than the body.
3. The candlestick tends not to have any upper shadow. Although, if a candle resembles either a Hammer or a Hanging Man but does have a small upper shadow – it is a Sword candle and a different strategy is used.
Hammer and Hanging Man MT4 indicator could be used on any currency pair and during any time-frame. However, the shorter the time-frame the less reliable is the signal. If a candle meets the pattern recognition requirements after it closes, either a red or green dot is displayed to warn of a bearish or bullish signal accordingly. In addition, any trend indicator, such as Trend Envelopes, could be added to the chart to confirm the signal.
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.
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