Hammer Algo Strategy AZT
Strategy Premise
A hammer is a price pattern in candlestick charting that occurs when a security trades significantly lower than its opening, but rallies within the period to close near opening price.
This pattern forms a hammer-shaped candlestick, in which the lower shadow is at least twice the size of the real body. The body of the candlestick represents the difference between the open and closing prices, while the shadow shows the high and low prices for the period.
Strategy Logic
Long Entry: When (closing Price – opening Price) is > 0 and (closing Price – opening Price) / 3 is > (high price – closing Price) and (opening Price – low Price) /2 is > (closing Price –opening Price) and (closing Price – opening Price) is > (opening Price – low Price) /8, Send LE.
Long Exit: Either when SL or Target is hit. If SL/TGT is not hit and (opening Price – closing Price) is > 0 and (opening Price – closing Price) /3 is > (high Price – open Price) and (closing Price – low Price) /2 is > (opening Price – closing Price) and (opening Price – closing Price) is > (closing Price – low Price) / 8, send LX and SE
Short Entry: When (opening Price – closing Price) is > 0 and (opening Price – closing Price) /3 is > (high Price – open Price) and (closing Price – low Price) /2 is > (opening Price – closing Price) and (opening Price – closing Price) is > (closing Price – low Price) / 8, Send SE
Short Exit: Either when SL or Target is hit. If SL/TGT is not hit and (closing Price – opening Price) is > 0 and (closing Price – opening Price) / 3 is > (high price – closing Price) and (opening Price – low Price) /2 is > (closing Price –opening Price) and (closing Price – opening Price) is > (opening Price – low Price) / 8 send SX and LE
Hammer Strategy Parameters for TradingView Charts
Quantity: This is used to specify the trade quantity
Custom Stop Loss in Points: Movement in chart price against the momentum which will trigger exit
Custom Target in Points: Movement in chart price against the momentum which will trigger exit
Setting Up Alert
Before setting up an alert make sure that You have selected the desired script, timeframe, strategy settings, API bridge is configured and running. Click in settings add alert and paste {{strategy.order.comment}} in message box.
Important: do not change any settings during live trading.
A hammer is a price pattern in candlestick charting that occurs when a security trades significantly lower than its opening, but rallies within the period to close near opening price.
This pattern forms a hammer-shaped candlestick, in which the lower shadow is at least twice the size of the real body. The body of the candlestick represents the difference between the open and closing prices, while the shadow shows the high and low prices for the period.
Strategy Logic
Long Entry: When (closing Price – opening Price) is > 0 and (closing Price – opening Price) / 3 is > (high price – closing Price) and (opening Price – low Price) /2 is > (closing Price –opening Price) and (closing Price – opening Price) is > (opening Price – low Price) /8, Send LE.
Long Exit: Either when SL or Target is hit. If SL/TGT is not hit and (opening Price – closing Price) is > 0 and (opening Price – closing Price) /3 is > (high Price – open Price) and (closing Price – low Price) /2 is > (opening Price – closing Price) and (opening Price – closing Price) is > (closing Price – low Price) / 8, send LX and SE
Short Entry: When (opening Price – closing Price) is > 0 and (opening Price – closing Price) /3 is > (high Price – open Price) and (closing Price – low Price) /2 is > (opening Price – closing Price) and (opening Price – closing Price) is > (closing Price – low Price) / 8, Send SE
Short Exit: Either when SL or Target is hit. If SL/TGT is not hit and (closing Price – opening Price) is > 0 and (closing Price – opening Price) / 3 is > (high price – closing Price) and (opening Price – low Price) /2 is > (closing Price –opening Price) and (closing Price – opening Price) is > (opening Price – low Price) / 8 send SX and LE
Hammer Strategy Parameters for TradingView Charts
Quantity: This is used to specify the trade quantity
Custom Stop Loss in Points: Movement in chart price against the momentum which will trigger exit
Custom Target in Points: Movement in chart price against the momentum which will trigger exit
Setting Up Alert
Before setting up an alert make sure that You have selected the desired script, timeframe, strategy settings, API bridge is configured and running. Click in settings add alert and paste {{strategy.order.comment}} in message box.
Important: do not change any settings during live trading.