Bullish Hammer calculation is incorrect

[ricardonunesdev]

Hi @anandanand84 and @marcus-n3rd,

I love this module, but it looks like your Bullish Hammer calculation is incorrect.

File: technicalindicators/src/candlestick/BullishHammerStick.ts (link) Line: 18

isBullishHammer = isBullishHammer && (daysClose - daysOpen) <= 2 * (daysOpen - daysLow);

This means that the body should be twice the size of the wick (body <= 2 * wick).

It should be the other way around.

isBullishHammer = isBullishHammer && (daysClose - daysOpen) * 2 <= (daysOpen - daysLow);

Meaning that the wick should be twice the size of the body (2 * body <= wick).

Right?

Best regards, Ricardo Nunes

[rlmomin]

I dont think so. A bullish hammer has a tail that is bigger (2x in this code) than the body. Line 18 identifies the body as (daysClose - days Open). The tail is identified as (daysOpen - daysLow). So the body is <= 2x tail.

Rehan

On Fri, Jan 14, 2022 at 10:04 AM Ricardo Nunes @.***> wrote:

Hi @marcus-n3rd https://github.com/marcus-n3rd,

I love this module and use it everyday.

But it looks like your Bullish Hammer calculation is incorrect.

File: technicalindicators/src/candlestick/BullishHammerStick.ts Line: 18

isBullishHammer = isBullishHammer && (daysClose - daysOpen) <= 2 * (daysOpen - daysLow);

This means that the body should be twice the size of the wick (body <= 2 * wick).

It should be the other way around.

isBullishHammer = isBullishHammer && (daysClose - daysOpen) * 2 <= (daysOpen - daysLow);

Meaning that the wick should be twice the size of the body (2 * body <= wick).

Right?

Best regards, Ricardo Nunes

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[ricardonunesdev]

Hi @rlmomin,

I agree with your logic, but now with the code.

Example: If the body has a size of 10 and the tail has a size of 5, 10 <= 5 x 2 returns true, even though this is clearly not a hammer (body@10 is 2x the tail@5). The actual formula should be 2 x body <= tail which would return false for the above values 2 x 10 <= 5 but would return true if the body has a size of 5 and the tail a size of 10 (a hammer) 2 x 5 <= 10.

The logic is correct but the code is reversed.

Best regards, Ricardo Nunes

[rlmomin]

Yes, you are correct. The formula should be 2 x body <= tail. Thank you for the example. Good catch.

On Fri, Jan 14, 2022 at 11:08 AM Ricardo Nunes @.***> wrote:

Hi @rlmomin https://github.com/rlmomin,

I agree with your logic, but now with the code.

Example: If the body has a size of 10 and the tail has a size of 5, 10 <= 5 x 2 returns true, even though this is clearly not a hammer @. is 2x the @.). The actual formula should be 2 x body <= tail which would return false for the above values 2 x 10 <= 5 but would return true if the body has a size of 5 and the tail a size of 10 (a hammer) 2 x 5 <= 10.

The logic is correct but the code is reversed.

Best regards, Ricardo Nunes

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[ricardonunesdev]

Created a PR #253 with a fix for this issue.