Granthara04.03.02Hammer and hanging man

Every price in Part 04 comes from an unnamed vegetable market and is a teaching example. Nothing here is a quote, a recommendation, or a record of any listed company.

04.03.02 · Hammer and hanging man

PreviouslyA doji is named by where its shadows fall. This board has one long shadow and a body near the top.

One shape. Two names.

Thursday at the vegetable market. A truck nobody expected rolls into the yard at nine, the onion bidding collapses to ₹27.60, and by the bell it is back at ₹30.20. Lakshmi chalks four numbers on her board.

Which one it gets is not decided by anything on the board. It is decided by the week before it.

Updated

₹2.80
reached downward and handed straight back, on a board that finished up twenty paise
Part 04 · Reversal Patterns
  1. 04.03.01 Doji family: standard, long-legged, dragonfly, gravestone
  2. 04.03.02 Hammer and hanging man
  3. 04.03.03 Inverted hammer and shooting star
  4. 04.03.04 Bullish and bearish engulfing
  5. 04.03.05 Harami and harami cross
  6. 04.03.06 Piercing line and dark cloud cover
  7. 04.03.07 Morning star and evening star
  8. 04.03.08 Tweezer tops and bottoms
  9. 04.03.09 Doji stars and the abandoned baby
  10. 04.03.10 Three inside up and three inside down
  11. 04.03.11 Three outside up and three outside down
  12. 04.03.12 Tristar, two crows, and the upside-gap variant
0 of 12 read

Rahul, reading the board

“So nothing happened. It opened at thirty and it closed at thirty-twenty.”

He is reading the two numbers that changed least.

Lakshmi, wiping her hands

“Something happened. For one morning sellers showed they could take it to twenty-seven-sixty. The buyers took it back — this time.”

She is reading the number that was visited and not kept.

Learn

The four numbers, and the shape they make

First bid ₹30.00. Highest ₹30.40. Lowest ₹27.60. Last bid ₹30.20.

Draw them and you get a small body sitting near the top of the range, with a long shadow hanging beneath it — the trace of a price that went down hard and came all the way back. The shadow below is ₹2.40, roughly six times the body above it.

Granthara's rules engine calls that geometry a hammer shape, and stops there. It does not call it a hammer, because on the evidence of this board alone it cannot.

See it

The same board, dropped into two different weeks

Four numbers held exactly fixed. Only the five sessions before them change — and the name changes with them.

Nothing inside the board moved. The four numbers, the body, the shadow and the close are identical in both weeks.

The board holds the shape. The week beside it holds the name.

Learn

Why two names for one geometry

After a decline, a long lower shadow means sellers pushed into ground they had been taking all week — and, for the first session in a while, did not get to keep it. The old traders call that a hammer.

After a rise, the same shadow means something that had not happened all week just happened: somebody was able to move the price ₹2.80 down from the open. The buyers repaired it by the bell, but the capacity was demonstrated. That is a hanging man.

Notice what is being read in both cases. Not the shape — the shape is identical. What is being read is whether the shadow shows something new for that week, and only the sessions beside it can answer that.

Learn

What the board permits, and what it does not

It permits you to say that ₹27.60 was reached and not held, and that the last bid finished near the top of the range. Both are facts about Thursday.

It does not permit you to say the fall is over, or that a rise is ending. A hammer is not a buy and a hanging man is not a sell; those are claims about Friday, and Friday is not drawn on this board. Plenty of hammers are followed by another week of lower closes.

It does not permit you to say who did what, either. The truck is a story that makes the morning memorable — it is not in the four numbers, and on a real chart you would never know it existed.

Rahul's question, answered“Then why write it down at all?” Because a session where prices were reached and refused is different from a session where they were reached and kept — and the board records exactly that difference, for whoever reads the week around it.
Remember

A small body near the top of the range with a long shadow beneath it is one geometry with two names. After a decline it is a hammer; after a rise it is a hanging man. The board decides the shape and the week beside it decides the name — and neither of them decides what the next session does.

Everything this chapter has told you, in order

  1. 04.03.01Open and close nearly meet; shadows and context complete the picture.
  2. 04.03.02One shape, two names: the trend that came before it supplies the name.
Next
04.03.03 — Inverted hammer and shooting star

Next: the same board turned upside down — one long shadow above, and the two names that shape earns.