3 Day Hammer

[HYield]

Hi fellow members.

I would appreciate any feedback on this trading system 3-DAY Hammer. Any input would be appreciated. http://www.arbtrading.com/hammer.htm
Also if its suitable for any other instrument like Forex or Futures. An enquiry email has been sent but have not had any replies.

Thanks in advance

HY

 

[TheBramble]

They've already given you everything you need.

Buy on a temporary relaxation on an established up trend using a Candle "Hammer".

This isn't anything new.

Buying into temporary weakness in an up trend and selling into temporary strength in a down trend is a viable trading strategy.

A Hammer is no more/less reliable than any other secondary indicator to confirm the temporary lull in the trend. Of course, you need to be able to determine when a lull is a reversal, but that's what a stoploss is for...

 

[HYield]

Thanks TheBramble..I thought so too but being a newbee, I can't help but felt atttracted to the messages put across in the website:

....If you are going to succeed, you need a simple but robust entry
method. It must be good in bull, bear and sideways markets ...WOW!

A complete system that works. This includes a high probability low risk entry setup.
Detailed coverage on how to enter
How to place you orders
Exactly how and where to exit
How much to trade for your account size
Where to place your stops
How long a trade should last
How to filter out likely losses
When and where to take profits

And the "3" Day seems kind of mysteriously..BUY 3 days later after a Hammer?

It cost only $40 but just want some affirmation if anyone bought this system and could pehaps do a brief review if $40 bucks worth the spend?

Hy

 

[TheBramble]

OK. For $40 it probably doesn't matter.

But I'd be keen to see how they trade the same system in trending and non-trending.

All the other bits & bobs, as they say, are vital. But you can get that for free on most trading websites - especially this one!

 

[TWI]

I would not trust your hard earned cash to candlesticks alone. It is one rapid way to poverty I asure you. I have yet to meet a person who makes a living trading candlesticks. I say this and I like candlesticks and have read both Nissen books cover to cover.

 

[FetteredChinos]

im guessing that the 3 day hammer is essentially whacking 3 days together with blue tack and treating it as one candle. and buying/selling breakouts of that combined candle.

eg after a downtrend.

day 1 opens high. sells off.
day 2 continues sell off early on, then bit of a recovery towards the close
day 3 opens a bit higher and motors higher and closes near the open of day 1.

et voila, a 3 day hammer.

i recall seeing this idea mentioned somewhere else, together with 3 day pivots, and from what i remember, its performance was marginal.

then again, this may not be the 3 day hammer method in question.

fc

 

[TWI]

I more interesting proposition would be the 3 day hanging man although that one stinks a bit.