Hanging Man : Single Candlestick Reversal Patterns

Hanging Man Formation in Candlestick Reversal Pattern

Nature – Like Shooting Star,  Hanging man is a bearish Single Candle Reversal Pattern which is relevant when forms at the top of uptrend and can indicate short to long term trend reversal after confirmation.

Real Body – It can be either red or green. Red Hanging Man is more bearish than the green Hanging man.

Lower Shadow – The lower shadow is at least 2 times the size of body.

Upper Shadow – Ideally no upper shadow but a very small shadow can be acceptable.

Hanging Man Candlestick

Set up – There must be an uptrend.

The Hanging Man, ideally gaps up open from previous candle.

Confirmation of Set up – Price trading below the low of Hanging man for aggressive traders. Price closes below the low of Hanging Man for conservative traders.

Sharing a good You Tube video on Hanging man, which will further help to understand the pattern and underlying psychology –

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