2024-02-16 14:59:51
Pattern "Hanging Man" in Trading: How to Identify a Trend Reversal? This pattern is observed when the opening price exceeds the closing price. Typically, it occurs at the end of an uptrend and may signal a reversal downward.
Candle Shape: It is characterized by a long lower shadow and a relatively short body at the top.
Lower Shadow: Indicates that prices dipped below the opening but then recovered and closed near the opening.
Opening and Closing: The closer the opening to the minimum and the closing to the maximum, the stronger the "Hanging Man" signal is considered.
Wait for next bearish candle after "Hanging Man". This may indicate a strengthening bearish trend. It is important to remember that the color of the "Hanging Man" candle is not always the determining factor in the analysis. It is much more important to consider the shape of the candle, its position on the chart, and the context of the current trend.
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