[Anonymous]

	Quote:	brownsfan019
	See my attachment for what I see... 1) Valid hammer that looks to have a large stop. It may have delivered a profit target depending on what you use to exit.

The Logical Stop Area shown is actually 2 pips below the low of the White Hammer Line's Low. In a sense it looks larger than actually is.

I am sure you see that the Pt1 was hit. If multiple contracts are used, one wants to wait for the subsequent Pts to be higher than Pt1.

	Quote:	brownsfan019
	2) An even better hammer than the first - smaller stop needed, a better 'looking' hammer (nice clean line with a textbook looking hammer). The end result was no threat to your logical stop whatsoever.

I am looking for a particular reliable sub-group of Hammer Patterns, not hammer lines. I do not think hammer lines, or any single candlestick, makes for a good signal. So while that is a dark hammer , it is not one that I would be looking at.

Having said that, Note the large dark WRB. Note how the WRB does not trade lower than the low of the White hammer line in the valid pattern. This is key.

Remember, Candle patterns are a secondary method in this context. The primary method is WRB analysis.

Japanese Candlestick Patterns are dependant on Wide Range Body analysis. WRB analysis, however, is independent of Japanese Candlesticks.

	Quote:	brownsfan019
	So I see 2 trades here with one that did not produce much and one that delivered nicely.

So I see 1 trade with some slight negative action in terms of a move lower than the low of the Hammer Line. Yet within the negative action there is positive price action confirmation through WRB analysis.

I also see a nice dark hammer line, but not a valid bullish dark hammer pattern via the sub-group I am looking at.

Now if one gets to the ultimate level, at least for me, I do think understanding the supply/demand dynamics would change things in such a way that the dark hammer line would be another entry.

That is, one would be trading Price Action only, not the various hammer lines or patterns themselves.