Hanging Man Candlestick Pattern
Hanging Man Candlestick Pattern
You get to see the up trend before the hanging man pattern is formed. You can also say that hanging man is made at the top of the up trend.
You may also get to see the gap up opening before the hanging man. Not only this, gap down opening can also be seen after hanging man.
The lower shadow that is formed in the Hanging Man. It should be at least twice the size of the real body. That is, you get to see long lower shadow in it.
The real body formed in a hanging man can be bullish as well as bearish. It would be better if the real body was bearish.
Key Points
- Up Trend
- Gap Up or Gap Down
- Lower shadow at least twice as big as real body
- Long Lower Shadow
- Real body can be bullish or bearish, better if bearish
Trade Setup – Hanging Man Candlestick Pattern
As soon as you see the hanging man after the up trend. You must understand that the market can turn. After getting the breakdown of the candle formed before the hanging man, you can place your position in the market and you should place the stop loss above the high of the hanging man.
Difference Between Hammer and Hanging Man
Hammer
The hammer pattern is formed at the bottom of the down trend. This means before that you will get to see the down trend. In this you get to see the long lower shadow.
The lower shadow should be at least twice that of the real body. The real body can be bullish as well as bearish. But it would be better if he was bullish.
Hanging Man
You get to see the up trend before the hanging man pattern is formed. You can also say that hanging man is made at the top of the up trend. You may also get to see the gap up opening before the hanging man.
Not only this, gap down opening can also be seen after hanging man. The lower shadow that is formed in the Hanging Man. It should be at least twice the size of the real body.
That is, you get to see long lower shadow in it. The real body formed in a hanging man can be bullish as well as bearish. It would be better if the real body was bearish.
Example 1 – Hanging Man
Hanging Man candlestick pattern is a single candlestick pattern that if formed at an end of an uptrend. It is a bearish reversal pattern that signals that the uptrend is going to end.
This also indicates that the bulls have lost their strength in moving the prices up and bears are back in the market.
Example 2 – Hanging Man
Some examples of hanging man are shown to you with the help of chart. You must have helped a lot in understanding Hanging Man with the help.
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