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Hammer & Hanging Man with CCI Confirmation

This strategy reimplements the MetaTrader "AH HM CCI" expert in StockSharp. It watches for hammer and hanging man candlestick patterns and requires confirmation from the Commodity Channel Index (CCI) before entering a trade. The extra confirmation filters out weak patterns and helps align entries with the momentum shift signaled by CCI.

The logic runs on completed candles only and uses a short simple moving average (SMA) to define the prevailing trend. The previous candle must be a hammer in a downtrend with oversold CCI to buy, or a hanging man in an uptrend with overbought CCI to sell. Exits are managed when CCI crosses configurable trigger levels, replicating the vote-based exit logic from the original expert.

Trading Logic

  1. Trend filter – The midpoint of the previous candle has to be below (for longs) or above (for shorts) an SMA calculated on closing prices. This mimics the original wizard's moving-average trend check.
  2. Pattern detection – The strategy evaluates the previous bar and checks:
    • Body entirely in the top third of the candle range.
    • Gap between the previous candle's open/close and the candle before it.
    • Directional context (hammer for a downtrend, hanging man for an uptrend).
  3. CCI confirmation – The previous bar's CCI must be below the long threshold or above the short threshold. The default values match the MetaTrader template (40 for longs and 60 for shorts).
  4. Position exits – Existing positions are closed when CCI crosses either the lower or upper exit thresholds. Crossing from below closes longs; crossing from above closes shorts.

Parameters

Name Description Default
CandleType Candle type and timeframe used for pattern recognition. TimeSpan.FromMinutes(15)
CciPeriod Number of bars used by the Commodity Channel Index. 11
MaPeriod Number of bars in the SMA trend filter. 5
LongConfirmationThreshold Maximum CCI value allowed for a hammer signal. 40
ShortConfirmationThreshold Minimum CCI value allowed for a hanging man signal. 60
ExitUpperThreshold CCI level that triggers exits after an upward crossing. 70
ExitLowerThreshold Secondary exit level for early signals. 30

All parameters are available for optimization. The thresholds accept negative values, so you can adapt the strategy to other markets or noise levels by tightening or loosening the filters.

Order Management

  • Entries use market orders sized as Volume + |Position|, ensuring reversals are executed in a single trade.
  • Exits rely purely on the CCI crosses to stay close to the MetaTrader expert. Add StartProtection calls if you need explicit stop-loss or take-profit levels.

Usage Tips

  • Apply the strategy on liquid instruments where candlestick gaps and tails are informative.
  • Experiment with longer CciPeriod and MaPeriod values to smooth out noise when trading higher timeframes.
  • Lowering LongConfirmationThreshold or raising ShortConfirmationThreshold will reduce the number of trades but improve selectivity.
namespace StockSharp.Samples.Strategies;

using System;
using Ecng.Common;
using StockSharp.Algo.Indicators;
using StockSharp.Algo.Strategies;
using StockSharp.Messages;

/// <summary>
/// Hammer/Hanging Man + CCI strategy.
/// Buys on hammer with negative CCI, sells on hanging man with positive CCI.
/// </summary>
public class HammerHangingManCciStrategy : Strategy
{
	private readonly StrategyParam<DataType> _candleType;
	private readonly StrategyParam<int> _cciPeriod;
	private readonly StrategyParam<decimal> _cciLevel;
	private readonly StrategyParam<int> _signalCooldownCandles;
	private int _candlesSinceTrade;

	public DataType CandleType { get => _candleType.Value; set => _candleType.Value = value; }
	public int CciPeriod { get => _cciPeriod.Value; set => _cciPeriod.Value = value; }
	public decimal CciLevel { get => _cciLevel.Value; set => _cciLevel.Value = value; }
	public int SignalCooldownCandles { get => _signalCooldownCandles.Value; set => _signalCooldownCandles.Value = value; }

	public HammerHangingManCciStrategy()
	{
		_candleType = Param(nameof(CandleType), TimeSpan.FromMinutes(60).TimeFrame())
			.SetDisplay("Candle Type", "Candle timeframe", "General");
		_cciPeriod = Param(nameof(CciPeriod), 14)
			.SetGreaterThanZero()
			.SetDisplay("CCI Period", "CCI period", "Indicators");
		_cciLevel = Param(nameof(CciLevel), 100m)
			.SetDisplay("CCI Level", "CCI threshold", "Signals");
		_signalCooldownCandles = Param(nameof(SignalCooldownCandles), 6)
			.SetGreaterThanZero()
			.SetDisplay("Signal Cooldown", "Bars to wait between trades", "Trading");
	}

	/// <inheritdoc />
	protected override void OnReseted()
	{
		base.OnReseted();
		_candlesSinceTrade = SignalCooldownCandles;
	}

	/// <inheritdoc />
	protected override void OnStarted2(DateTime time)
	{
		base.OnStarted2(time);
		_candlesSinceTrade = SignalCooldownCandles;
		var cci = new CommodityChannelIndex { Length = CciPeriod };
		var subscription = SubscribeCandles(CandleType);
		subscription.Bind(cci, ProcessCandle).Start();
	}

	private void ProcessCandle(ICandleMessage candle, decimal cciValue)
	{
		if (candle.State != CandleStates.Finished) return;

		if (_candlesSinceTrade < SignalCooldownCandles)
			_candlesSinceTrade++;

		var body = Math.Abs(candle.ClosePrice - candle.OpenPrice);
		var range = candle.HighPrice - candle.LowPrice;
		if (range <= 0 || body <= 0) return;

		var upperShadow = candle.HighPrice - Math.Max(candle.OpenPrice, candle.ClosePrice);
		var lowerShadow = Math.Min(candle.OpenPrice, candle.ClosePrice) - candle.LowPrice;

		var isHammer = lowerShadow > body * 2.5m && upperShadow < body * 0.5m;
		var isHangingMan = upperShadow > body * 2.5m && lowerShadow < body * 0.5m;

		if (isHammer && cciValue < -CciLevel && Position <= 0 && _candlesSinceTrade >= SignalCooldownCandles)
		{
			BuyMarket();
			_candlesSinceTrade = 0;
		}
		else if (isHangingMan && cciValue > CciLevel && Position >= 0 && _candlesSinceTrade >= SignalCooldownCandles)
		{
			SellMarket();
			_candlesSinceTrade = 0;
		}
	}
}