C Hammer HangingMan

Definition

The C_Hammer_HangingMan indicator identifies the occurrence of 2 candlestick patterns: Hammer and Hanging Man, and marks the bars with these patterns.

A Hammer is a price pattern that occurs when a security trades significantly lower than its opening, but rallies within the period to close near the opening price.

The Hammer pattern forms a hammer-shaped candlestick, in which the lower shadow is at least twice the size of the real body. The trend is decreasing and the candle can be either red, or green, but not a Doji.

A Hanging Man candlestick occurs during an uptrend and warns that prices may start falling.

The Hanging Man candle is composed of a small real body, a long lower shadow, and little or no upper shadow. The trend is advancing and the candle can be either red, or green, but not a Doji.

Default Inputs

Length sets the number of bars to calculate the average body, 14 by default.

Factor sets a threshold factor for body size in relation to the bar range, 2 by default. This input value means that tail must be 2x larger than body.