1
00:00:01,430 --> 00:00:04,280
Now, here, I will give you an example.

2
00:00:05,420 --> 00:00:13,910
Of trading the hammer, so we have ultimately come here to make trades on the basis of the candlestick

3
00:00:13,910 --> 00:00:14,530
analysis.

4
00:00:14,780 --> 00:00:18,500
So here I'm going to tell you how you can trade a hammer with a ruler.

5
00:00:19,220 --> 00:00:21,090
So, first of all, let me give you an example.

6
00:00:21,590 --> 00:00:27,860
So this is a chart of Nifty when they chart the chart of Nifty.

7
00:00:28,400 --> 00:00:31,120
Can you spot a few hammers here?

8
00:00:32,330 --> 00:00:34,060
You'll see many of them, OK?

9
00:00:34,460 --> 00:00:40,470
And if you just glance through the chart, you will see so many of the families that are getting formed.

10
00:00:40,490 --> 00:00:48,050
Now, the problem with Hammat is that you see many of them and which hammer to trade and which not to

11
00:00:48,050 --> 00:00:48,430
trade.

12
00:00:49,010 --> 00:00:50,510
That is the question.

13
00:00:51,140 --> 00:00:57,200
So as far as this chart is concerned, there are so many hammers that I can tell you.

14
00:00:57,620 --> 00:01:00,020
Here is a hammer, this Energon Hammer.

15
00:01:00,320 --> 00:01:01,110
This is a hammer.

16
00:01:01,940 --> 00:01:06,990
This is you can see such a long tail.

17
00:01:07,610 --> 00:01:08,470
This is the hammer.

18
00:01:08,480 --> 00:01:12,320
And you can see multiple hammers are getting fallen continuously.

19
00:01:12,320 --> 00:01:14,390
One, two, three, four, five hammers are there.

20
00:01:15,230 --> 00:01:17,110
So you can see so many of them.

21
00:01:17,480 --> 00:01:20,170
Of course, there are many of them that you will spot here.

22
00:01:20,420 --> 00:01:21,380
This is, again, the hammer.

23
00:01:21,390 --> 00:01:23,270
But I've taken a few, for your example.

24
00:01:24,170 --> 00:01:28,770
Now you can see one, two, three, four, five, six, nine hammers here.

25
00:01:29,960 --> 00:01:33,500
The question is, are you going to trade each and every hammer?

26
00:01:34,220 --> 00:01:35,110
The answer is no.

27
00:01:35,870 --> 00:01:42,740
You cannot trade each and every hammer because if you treat them, you are bound to lose money in the

28
00:01:42,740 --> 00:01:43,250
long run.

29
00:01:44,150 --> 00:01:50,850
Here, for example, here, when is form market has gendering.

30
00:01:50,960 --> 00:01:51,770
It worked here.

31
00:01:52,250 --> 00:01:56,860
Let's say, for example, this one here market did not go up.

32
00:01:56,870 --> 00:01:59,090
In fact, it was down here also.

33
00:01:59,100 --> 00:02:00,260
Market did not go up.

34
00:02:00,260 --> 00:02:01,850
It went down here.

35
00:02:01,850 --> 00:02:02,700
Market went down.

36
00:02:03,470 --> 00:02:07,090
So there are so many cases where Hammer did not work.

37
00:02:07,640 --> 00:02:12,530
So how to choose a hammer, which will work in most of the cases.

38
00:02:12,530 --> 00:02:14,240
Of course, it is not like that.

39
00:02:14,240 --> 00:02:16,340
That hammer will work in all the cases.

40
00:02:16,550 --> 00:02:18,860
We are trying to increase the probability.

41
00:02:18,860 --> 00:02:22,900
So maybe 70 to 75 percent of the cases, it should work.

42
00:02:23,540 --> 00:02:29,320
So I'm going to tell you a simple filter that you can use while trading the hammer.

43
00:02:29,780 --> 00:02:33,230
So I will firstly give you two basic filters.

44
00:02:33,230 --> 00:02:38,950
Then in coming videos I will give you some more filters to the candlesticks.

45
00:02:39,860 --> 00:02:47,870
So first filter, when you talk about creating Hamade is that you should use that hammer, which is

46
00:02:47,870 --> 00:02:50,360
coming in downtrend is very important.

47
00:02:50,610 --> 00:02:53,180
So this is the first one that you have to ask this question.

48
00:02:53,480 --> 00:02:55,280
Whether this hammer is in downtrend.

49
00:02:55,940 --> 00:02:59,000
If answer is yes, then ask second question.

50
00:02:59,720 --> 00:03:02,270
The second question is identify the next scandal.

51
00:03:03,350 --> 00:03:05,760
As soon as we get hammer, you are not supposed to trade.

52
00:03:05,840 --> 00:03:10,820
You are supposed to wait for the next scandal if next scandal is green.

53
00:03:12,170 --> 00:03:20,080
Then only initiate the trade, so say what is a scandal opens green, then only we have to take this

54
00:03:20,090 --> 00:03:20,400
trade.

55
00:03:20,990 --> 00:03:28,010
So in other words, we don't have to take trade in any hammer that you see on the charts who are going

56
00:03:28,010 --> 00:03:28,990
to see many of them.

57
00:03:29,330 --> 00:03:33,380
And we are not going to trade each and every of those.

58
00:03:34,220 --> 00:03:41,420
So we'll take our example in previous light and we'll see will apply these filters and see how how the

59
00:03:41,420 --> 00:03:42,560
performance improves.

60
00:03:43,580 --> 00:03:46,820
So let's talk about these hammers.

61
00:03:47,540 --> 00:03:49,730
Let's ask a question for each and every hammer.

62
00:03:50,060 --> 00:03:54,110
So here the first question is, is the hammer coming down?

63
00:03:54,620 --> 00:03:55,490
Answer is yes.

64
00:03:55,850 --> 00:03:57,770
Second, see the next scandal?

65
00:03:58,070 --> 00:03:59,790
Is this scandal opening green?

66
00:04:00,330 --> 00:04:00,920
Yes.

67
00:04:01,760 --> 00:04:07,370
If both are, yes, then initiate the trade and you can see that it was a second hammer.

68
00:04:07,490 --> 00:04:08,390
That is this one.

69
00:04:08,780 --> 00:04:10,490
First question, is it coming down?

70
00:04:10,850 --> 00:04:12,580
No, it is not coming in.

71
00:04:12,590 --> 00:04:13,410
Don't don't trend.

72
00:04:13,460 --> 00:04:14,420
That's already happening.

73
00:04:14,420 --> 00:04:15,920
Uptrend has already started.

74
00:04:16,820 --> 00:04:18,280
It is coming in an uptrend.

75
00:04:18,290 --> 00:04:19,510
So we are not going to trade.

76
00:04:19,520 --> 00:04:22,940
So either if one answer is no, then don't trade.

77
00:04:23,360 --> 00:04:24,260
Third one here.

78
00:04:25,340 --> 00:04:26,960
First question, is it coming down?

79
00:04:27,290 --> 00:04:31,790
No, it is not coming down the mountain does happen and the uptrend has started.

80
00:04:32,000 --> 00:04:34,610
We are not going to trade here again.

81
00:04:34,760 --> 00:04:35,960
Ask the question, is it?

82
00:04:36,010 --> 00:04:37,400
No, not at all.

83
00:04:37,580 --> 00:04:38,470
It is an uptrend.

84
00:04:38,540 --> 00:04:40,610
We are not going to trade here.

85
00:04:41,330 --> 00:04:43,170
The question is, is it in downturn?

86
00:04:43,310 --> 00:04:46,820
The US market is and the second is next.

87
00:04:46,820 --> 00:04:47,520
Scandal green.

88
00:04:47,550 --> 00:04:48,080
Yes.

89
00:04:48,830 --> 00:04:50,330
Trade and see it worked.

90
00:04:51,050 --> 00:04:55,800
Say, for example, this kind of question, is it in downtrend?

91
00:04:55,910 --> 00:04:58,970
No, don't read this here.

92
00:04:59,300 --> 00:05:01,730
First question is, is it in downtrend?

93
00:05:02,210 --> 00:05:03,990
Yes, because the market is falling.

94
00:05:04,190 --> 00:05:07,010
Second question, is it a green candle?

95
00:05:07,010 --> 00:05:09,440
So next candle is is it green noon?

96
00:05:09,950 --> 00:05:11,930
So therefore, we are not going to trade this one.

97
00:05:13,490 --> 00:05:15,340
The next one this.

98
00:05:15,890 --> 00:05:17,000
Is it coming in downtrend?

99
00:05:17,250 --> 00:05:17,660
Yes.

100
00:05:18,110 --> 00:05:19,420
Is next candle green.

101
00:05:19,430 --> 00:05:22,690
See, this is the next candle, which is not green open lower than this.

102
00:05:22,700 --> 00:05:24,940
So we are not going to trade and it did not work.

103
00:05:25,580 --> 00:05:28,510
Then this one is this candle coming down there.

104
00:05:28,550 --> 00:05:32,500
You can see four or five red candles here and is next candle green.

105
00:05:32,520 --> 00:05:32,800
Yes.

106
00:05:33,800 --> 00:05:41,750
So you can see we have filtered out these nine hammers and we have come up with this one.

107
00:05:43,050 --> 00:05:51,230
Two and three, and in this case, coincidentally, luckily, all the three worked, isn't it?

108
00:05:51,720 --> 00:05:59,760
But in reality, you will see that seven to eight out of ten will work.

109
00:06:00,960 --> 00:06:07,320
So this is how you have to use the filter in the market while trading the hammer.

110
00:06:07,470 --> 00:06:10,530
I hope you have understood how to apply the filters.

111
00:06:10,960 --> 00:06:12,990
Let's go to the next concept.