In principle, the hanging man's lower shadow should be two or three times the height of the real body.Īn important part of utilizing the Hanging Man pattern is that the hanging man candle itself is only as strong as the confirming, immediately next candle. It signals the market has become vulnerable, but there should be bearish confirmation the next session with an open, and better is a close, under the hanging man's real body. But when this line appears during an uptrend, it becomes a bearish hanging man. The hanging man and the hammer are both the same type of candlestick pattern (i.e., a small real body, with little or no upper shadow, at the top of the session's range and a very long lower shadow). The pattern that you see here is called a Hanging Man pattern.Ī top candlestick reversal pattern that requires confirmation. While many candle patterns will provide you with the understanding of who is controlling the market (buyers vs sellers), there are other concepts to ensure you recognize.
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