Smart Trading Indicators
  • 👋Welcome!
  • Before You Start
    • 🚀What is Smart Trading Indicators?
      • 📘Company History
      • 🥇Mission
      • 🖼️Vision
    • ⚠️Why are our AI indicators better than the algorithmic indicators?
    • 🤖What are artificial intelligence powered trading indicators?
    • 🏆Why choose Smart Trading Indicators?
    • 📲How it Works?
    • ❓FAQs
      • Are you planning to integrate more features or tools in the future?
      • How can I get more information about specific strategies to use with the indicators?
      • Is there a limit to the number of assets I can monitor with your indicators?
      • Do I need to install any additional software to use Smart Trading Indicators?
      • How are the indicators updated with advancements in artificial intelligence
      • Do you offer trial periods for your indicators?
      • Can I use Smart Trading Indicators on platforms other than TradingView?
      • Do you have any training plans or courses for beginners?
      • Do you offer technical support or assistance in case of problems?
      • Is there a community or forum where I can interact with other Smart Trading Indicators users?
      • How do you ensure the security and accuracy of your tools?
      • Can I customize the indicators according to my trading strategy?
      • What sets Smart Trading Indicators apart from other indicators in the market
      • Do I need advanced knowledge to use the Smart Trading Indicators?
      • In which markets can I use Smart Trading Indicators?
      • How can I access the Smart Trading Indicators on TradingView?
      • What is Smart Trading Indicators?
  • Partners
    • 📈TradingView
      • 📉What is TradingView?
      • 📊Tradingview as a company
      • ⭐Highlighted Features of TradingView
      • 📐How to create and use an account in tradingview?
      • 💎Why is TradingView pivotal for Smart Trading Indicators?
      • 💰Benefits of this Association
  • Gettin Started
    • ⚙️SetUp Indicators
      • 📦Install/Setup Smart Trading Indicators on TradingView
      • 🔢How to customize the indicators? (Colors and parameters)
      • 🔔How to SetUp Buy and Sell Alerts on TradingView
    • ▶️Videos and Tutorials
      • Tutorials in English
      • Tutoriales en Español
  • Our Indicators
    • 📖Indicators User Manual
    • *️Advanced Risk Management with Automatic Trailing Stop
    • 🔨Hammer And Pump
      • General description - Hammer And Pump
      • Practical application: how and when to use it? - Hammer And Pump
      • Interpretation of signals or results - Hammer And Pump
      • Graphics or examples of what it looks like in action - Hammer And Pump
      • Frequently asked questions about Hammer And Pump
    • 🔥Shadow Trend
      • General description - Shadow Trend
      • Practical application: how and when to use it? - Shadow Trend
      • Interpretation of signals or results - Shadow Trend
      • Graphics or examples of what it looks like in action - Shadow Trend
      • Frequently asked questions about Shadow Trend
    • ✅Buy or Sell Estimation
      • General description - Buy or Sell Estimation
      • Practical application: how and when to use it? - Buy or Sell Estimation
      • Interpretation of signals or results - Buy or Sell Estimation
      • Graphics or examples of what it looks like in action - Buy or Sell Estimation
      • Frequently asked questions about Buy or Sell Estimation
    • 🦬Bull And Bear Attack
      • General description - Bull And Bear Attack
      • Practical application: how and when to use it? - Bull And Bear Attack
      • Interpretation of signals or results - Bull And Bear Attack
      • Graphics or examples of what it looks like in action - Bull And Bear Attack
      • Frequently asked questions about Bull And Bear Attack
    • 💎Hull
      • General description - Hull
      • Practical application: how and when to use it? - Hull
      • Interpretation of signals or results - Hull
      • Graphics or examples of what it looks like in action - Hull
      • Frequently asked questions about Hull
    • 💸Glory Channel Signals
      • General description - Glory Channel Signals
      • Practical application: how and when to use it? - Glory Channel Signals
      • Interpretation of signals or results - Glory Channel Signals
      • Graphics or examples of what it looks like in action - Glory Channel Signals
      • Frequently asked questions about Glory Channel Signals
    • 🚨Range Signals
      • General description - Range Signals
      • Practical application: how and when to use it? - Range Signals
      • Interpretation of signals or results - Range Signals
      • Graphics or examples of what it looks like in action - Range Signals
      • Frequently asked questions about Range Signals
    • ⏰Time to Buy or Sell
      • General description - Time to Buy or Sell
      • Practical application: how and when to use it? - Time to Buy or Sell
      • Interpretation of signals or results - Time to Buy or Sell
      • Graphics or examples of what it looks like in action - Time to Buy or Sell
      • Frequently asked questions about Time to Buy or Sell
    • 🛎️Channel Trend Signals
      • General description - Channel Trend Signals
      • Practical application: how and when to use it? - Channel Trend Signals
      • Interpretation of signals or results - Channel Trend Signals
      • Graphics or examples of what it looks like in action - Channel Trend Signals
      • Frequently asked questions about Channel Trend Signals
    • 🟢Buy or Sell Ribbon
      • General description - Buy or Sell Ribbon
      • Practical application: how and when to use it? - Buy or Sell Ribbon
      • Interpretation of signals or results - Buy or Sell Ribbon
      • Graphics or examples of what it looks like in action - Buy or Sell Ribbon
      • Frequently asked questions about Time to Buy or Sell
    • 🧬Hybrid Trends
      • General description - Hybrid Trends
      • Practical application: how and when to use it? - Hybrid Trends
      • Interpretation of signals or results - Hybrid Trends
      • Graphics or examples of what it looks like in action - Hybrid Trends
      • Frequently asked questions about Hybrid Trends
  • Our Backtestings
    • 🤝Results and backtesting speak for themselves
    • 📊What is backtesting?
      • ✅Importance of backtesting in trading
    • 📚Our Backtesting Methodology
      • 🗒️Historical data selection criteria
      • ⚙️Tools and software used
      • 📄Interpretation and analysis of results
    • 🏆Results by Indicator
      • 🔨Hammer And Pump
        • BTC - Backtesting Hammer And Pump
          • 🔨BTCUSD - 1D - 71.29% (Hammer And Pump)
          • 🔨BTCUSD - 4h - 121.09% (Hammer And Pump)
          • 🔨BTCUSD - 1h - 421.40% (Hammer And Pump)
          • 🔨BTCUSD - 30m - 220.67% (Hammer And Pump)
          • 🔨BTCUSD - 15m - 108.62% (Hammer And Pump)
        • ETH - Backtesting Hammer And Pump
          • 🔨ETHUSD - 1D - 82.22% (Hammer And Pump) (To be defined)
          • 🔨ETHUSD - 4h - 114.93% (Hammer And Pump)
          • 🔨ETHUSD - 1h - 310.40% (Hammer And Pump)
          • 🔨ETHUSD - 30m - 275.04% (Hammer And Pump) (To be defined)
          • 🔨ETHUSD - 15m - 202.16% (Hammer And Pump)
      • 🔥Shadow Trend
        • BTC - Backtesting Shadow Trend
          • 🔥BTCUSD - 1D - 59.30% (Shadow Trend)
          • 🔥BTCUSD - 4h - 589.27% (Shadow Trend)
          • 🔥BTCUSD - 1h - 630.78% (Shadow Trend)
          • 🔥BTCUSD - 30m - 1064.97% (Shadow Trend)
          • 🔥BTCUSD - 15m - 775.61% (Shadow Trend)
        • ETH - Backtesting Shadow Trend
          • 🔥ETHUSD - 1D - 77.36% (Shadow Trend)
          • 🔥ETHUSD - 4h - 314.83% (Shadow Trend)
          • 🔥ETHUSD - 30m - 1028.76% (Shadow Trend)
          • 🔥ETHUSD - 15m - % (Shadow Trend) (To be defined)
      • 💎Hull
        • BTC - Backtesting Hull
          • 💎BTCUSD - 1D - 98.04% (Hull)
          • 💎BTCUSD - 4h - 942.90% (Hull)
          • 💎BTCUSD - 1h - 351.85% (Hull)
          • 💎BTCUSD - 30m - 663.37% (Hull)
          • 💎BTCUSD - 15m - 342.73% (Hull)
        • ETH - Backtesting Hull
          • 💎ETHUSD - 4h - 501.82% (Hull)
          • 💎ETHUSD - 1h - 339.63% (Hull)
          • 💎ETHUSD - 30m - 208.93%
      • 🚨Range Signals
        • BTC - Backtesting Range Signals
          • 📣BTCUSD - 1D - 148.42% (Range Signals)
          • 📣BTCUSD - 4h - 311.02% (Range Signals)
          • 📣BTCUSD - 1h - 346.58% (Range Signals)
          • 📣BTCUSD - 30m - 414.84% (Range Signals)
        • ETH - Backtesting Range Signals
          • 📣ETHUSD - 1D - 159.96% (Range Signals)
          • 📣ETHUSD - 4h - 567.28% (Range Signals)
          • 📣ETHUSD - 1h - 394.85% (Range Signals)
          • 📣ETHUSD - 30m - 406.55% (Range Signals)
          • 📣ETHUSD - 15m - 353.14% (Range Signals)
      • 🛎️Channel Trend Signals
        • BTC - Backtesting Channel Trend Signals
          • 🛎️BTCUSD - 4h - 521.83% (Channel Trend Signals)
          • 🛎️BTCUSD - 1h - 275.33% (Channel Trend Signals)
          • 🛎️BTCUSD - 30m - 610.72% (Channel Trend Signals)
        • ETH - Backtesting Channel Trend Signals
          • 🛎️ETHUSD - 4h - 659.66% (Channel Trend Signals)
      • 💸Glory Channel Signals
        • BTC - Backtesting Glory Channel Signals
          • 💸BTCUSD - 1D - 90.40% (Glory Channel Signals)
          • 💸BTCUSD - 4h - 94.45% (Glory Channel Signals)
          • 💸BTCUSD - 1h - 459.28% (Glory Channel Signals)
          • 💸BTCUSD - 30m - 922.18% (Glory Channel Signals)
        • ETH - Backtesting Glory Channel Signals
          • 💸ETHUSD - 4h - 42.87% (Glory Channel Signals)
          • 💸ETHUSD - 1h - 315.63% (Glory Channel Signals)
          • 💸ETHUSD - 30m - 785.17% (Glory Channel Signals)
      • 🟢Buy or Sell Ribbon
        • BTC - Backtesting Buy or Sell Ribbon
          • 🟢BTCUSD - 1D - 75.04% (Buy or Sell Ribbon)
          • 🟢BTCUSD - 4h - 540.29% (Buy or Sell Ribbon)
          • 🟢BTCUSD - 1h - 1000.08% (Buy or Sell Ribbon)
          • 🟢BTCUSD - 30m - 668.26% (Buy or Sell Ribbon)
          • 🟢BTCUSD - 15m - 550.87% (Buy or Sell Ribbon)
        • ETH - Backtesting Buy or Sell Ribbon
          • 🟢ETHUSD - 1D - 76.59% (Buy or Sell Ribbon)
          • 🟢ETHUSD - 4h - 207.50% (Buy or Sell Ribbon)
          • 🟢ETHUSD - 1h - 483.88% (Buy or Sell Ribbon)
          • 🟢ETHUSD - 30m - 643.08% (Buy or Sell Ribbon)
          • 🟢ETHUSD - 15m - 334.95% (Buy or Sell Ribbon)
      • 🧬Hybrid Trends
        • BTC - Backtesting Hybrid Trends
          • 🧬BTCUSD - 1D - 33.74% (Hybrid Trends)
          • 🧬BTCUSD - 4h - 106.96% (Hybrid Trends)
          • 🧬BTCUSD - 1h - 265.68% (Hybrid Trends)
          • 🧬BTCUSD - 30m - 353.71% (Hybrid Trends)
          • 🧬BTCUSD - 15m - 111.50% (Hybrid Trends)
        • ETH - Backtesting Hybrid Trends
          • 🧬ETHUSD - 1D - 35.69% (Hybrid Trends)
          • 🧬ETHUSD - 4h - 111.26% (Hybrid Trends)
          • 🧬ETHUSD - 1h - 285.60% (Hybrid Trends)
          • 🧬ETHUSD - 30m - 373.89% (Hybrid Trends)
          • 🧬ETHUSD - 15m - 116.04% (Hybrid Trends)
    • 🪙Results by Asset
      • 📈BTC • Bitcoin | Backtesting Results
      • 📈ETH • Ethereum | Backtesting Results
    • ❓Frequently Asked Questions (FAQs) about Backtesting
  • Smart A.I Alerts
    • 🔔Smart A.I Trading Alerts Subscription
      • 🥇Why our A.I trading alerts are the best of the market?
      • 🚨Our Smart A.I Trading Alerts Subscription
      • 📚Introduction to Alert, Interpretation Using the Emoji Dictionary
      • 🗓️Our Daily Reports
      • ❓FAQs
  • Exchanges
    • 🏦Bitget
      • ☑️Bitget as a company
      • 👤How to Create an Account on Bitget?
      • 💎Benefits of Registering with Our Link
    • Bybit
      • Bybit as a company
      • How to Create an Account on Bybit?
    • KuCoin
      • Bitget as a company
      • How to Create an Account on KuCoin?
    • MEXC
      • MEXC as a company
      • How to Create an Account on MEXC?
    • OKX
      • OKX as a company
      • How to Create an Account on OKX?
  • Brokers
    • Exness
      • Exness as a company
      • How to Create an Account on Exness?
    • ATFX
      • ATFX as a company
      • How to Create an Account on ATFX?
    • IronFX
      • IronFX as a company
      • How to Create an Account on IronFX?
  • Affiliate Program
    • 🫂What is it?
    • ℹ️How to join and how does it work?
    • 💸How to withdraw profits?
    • ❔FAQs
  • Prices and Packages
    • 💵Indicators Subscription Plans and Prices
      • 💎Quarterly Full Pass A.I Indicators
      • 💎Annually | Full Pass A.I Indicators
      • 💎Lifetime Plan | Full Pass A.I Indicators (LIMITED TIME ONLY)
    • 💲Payment methods
    • ❓FAQs
  • Technical Analysis
    • 📕Glossary
    • 📉Trading Chart
    • 📊Volume
    • ⚖️Trends
    • 📏Support & Resistance
  • Technical Support
    • 🎧How to contact the support team
    • ⁉️Resolution of common problems
    • 🫂Forum or community to discuss problems and solutions
  • Terms and Conditions
    • ⛓️Terms of Service
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    • 🔗Disclaimer
  • Links
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  • Christmas Giveaway
    • 🎄Christmas Giveaway
      • 🎉About our Giveaway
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      • 🎊Prizes Giveaway
      • ⚖️Terms and Conditions Giveaway
      • ❓FAQs Giveaway
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  • Initial Configuration:
  • TradingView Configuration:
  • Usage and Application:
  1. Our Indicators
  2. Hammer And Pump

Practical application: how and when to use it? - Hammer And Pump

PreviousGeneral description - Hammer And PumpNextInterpretation of signals or results - Hammer And Pump

Last updated 1 year ago

The "Hammer and Pump" indicator from SMART TRADING INDICATORS is an advanced fusion of trading techniques, designed to provide clear signals in various market environments.

Here are the details on how to effectively apply it:

Initial Configuration:

  1. Bollinger Bands Adjustment:

    • Period: This is the number of candles or periods considered for calculating the moving average and standard deviation. A longer period captures longer-term trends but may be less sensitive to rapid movements. A shorter period may provide more frequent signals but with an increased risk of false alarms.

    • Standard Deviations: This determines the width of the bands. Increasing this number will result in wider bands, which could be useful in more volatile markets. Reducing it will make them narrower, which may be useful for less volatile markets.

  2. ATR Filter Activation:

    • ATR (Average True Range) measures market volatility. By activating this filter, "Hammer and Pump" takes into account the current market volatility when generating signals. This filter can be especially useful during economic announcements or events that cause abrupt price movements.

    • Adjust the ATR period according to your preference. A longer ATR period provides a broader view of volatility, while a shorter one reacts more quickly to recent changes.

TradingView Configuration:

It is configured within the TradingView platform using a series of adjustable parameters. Let me explain each of them:

  • Enable strategy backtesting on chart: By enabling this option, you can conduct backtesting on the chart to assess how this strategy would have performed in the past. It's advisable to use the suggested settings and activate the 'Trailing Stop' control unless you're an expert.

  • Activate Trailing Stop Control: This option allows you to activate the Trailing Stop control, which is a tool for managing risk in your trades. Essentially, it automatically adjusts to protect your profits as the price moves in your favor.

  • Use Recommended Strategy for BTC/USD • [Timeframe]: By choosing one of these options, the indicator will automatically apply the optimal settings for the BTC/USD pair for the specified timeframe (15min, 30min, 1h, 4h, 1D).

  • Use Recommended Strategy for ETH/USD • [Timeframe]: By choosing one of these options, the indicator will automatically apply the optimal settings for the ETH/USD pair for the specified timeframe (15min, 30min, 1h, 4h, 1D).

  • Use Custom Strategy Parameters Settings: This option is for advanced users who wish to customize the strategy parameters. If you're not an expert, it's recommended not to enable this option.

  • BB Period (Bollinger Bands Period): This parameter determines the number of periods used to calculate the Bollinger Bands. You can adjust it according to your preferences and trading strategies. Higher values smooth the bands, while lower values make them more sensitive to price changes.

  • BB Deviations (Bollinger Bands Deviations): This parameter sets the number of standard deviations used to calculate the Bollinger Bands. You can adjust it to widen or narrow the bands. Higher values generate wider bands, indicating higher volatility, while lower values create narrower bands.

  • ATR Filter (ATR Filter): This parameter determines whether an ATR (Average True Range) filter is used to enhance the indicator's signals. If it's enabled (true), the ATR filter will be applied; otherwise, it will be omitted. The ATR filter helps avoid false signals by taking market volatility into account.

  • ATR Period (ATR Period): If the ATR filter is enabled, this parameter defines the number of periods used to calculate the Average True Range. You can adjust it according to your preferences and the market volatility you want to consider.

  • Hide Labels: This parameter determines whether you want to hide labels on the chart. If you activate it (true), labels will not be displayed; otherwise, they will be shown.

Usage and Application:

  • Trend Identification: First, observe the indicator's trend line. If it's green, we're in a possible bullish trend; if it's red, it's a bearish one. This simple visualization can help guide your strategy and know which direction to trade.

  • Buy/Sell Signals: Keep an eye on the bomb (💣) and hammer (🔨) icons. A bomb suggests a potential buying opportunity, while a hammer indicates a potential sale. These signals are generated based on the interaction of price with the Bollinger Bands and the underlying trend detected by the indicator.

  • Range vs. Trending Markets: While the "Hammer and Pump" can operate in any market type, it's important to identify whether the asset is in a ranging phase (moving sideways) or a trending one (moving consistently up or down). In range-bound markets, it might be wiser to wait for additional confirmations before acting on the signals.

  • Additional Confirmations: While the "Hammer and Pump" is a powerful tool on its own, combining it with other indicators like RSI, MACD, or even candlestick patterns can offer a more comprehensive view and reduce the risk of trading based on a false signal.

  • Risk Management: Whenever you take a position based on "Hammer and Pump" signals, ensure you set clear stop-loss and take-profit levels. This not only protects your capital but also allows you to trade with more confidence and discipline.

In summary, the "Hammer and Pump" indicator is a valuable addition to any trader's toolbox, but like any tool, its effectiveness is maximized when used appropriately and in conjunction with a well-thought-out trading strategy.

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