This post is part of the T4p Series. In the previous post, we discussed creating your custom signal generation pattern. In this post, we will discuss a famous candlestick pattern called the Hammer pattern. We will discuss the pattern, what it is all about, and how it helps traders to earn money. Introduction A Hammer is a single candlestick pattern that forms during a downtrend and is characterized by having a small real body at the top of the candle, a long lower shadow (at least 2-3 times the size of the body), and little to no upper shadow. The pattern indicates a potential trend reversal as it shows that despite…
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Getting Started with Candlesticks and Python
This post is part of the T4p Series. In this post, we will briefly discuss candlesticks, their basics, types, and how you can use OHLC data to identify them. I’ll aim to keep it short and to the point. What is a CandleStick Candlesticks are graphical representations of price movements in financial markets, typically showing the opening, closing, high, and low prices for a specific time period. History of CandleSticks Candlestick charting has a rich history that dates back centuries. It originated in Japan during the 18th century, long before the advent of modern financial markets as we know them today. The story begins with Munehisa Homma, a Japanese rice…
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Introduction to trading for programmers
I am starting a new series, Trading for Programmers (T4P), where I will cover topics related to trading and how programmers can leverage their existing skills. This is the first post in the series. Why Programmers Should Explore Trading Before diving into trading, it’s important to understand why programmers should consider getting into it, even if they aren’t particularly fond of trading. Trading might seem like a world of its own, but it’s actually a great fit for those skilled in computers and numbers. At its core, trading involves buying and selling assets like stocks or cryptocurrencies to make a profit. For programmers, this can be especially intriguing because it’s…
