Hanging Man Candlestick Pattern - How to Trade Hanging Man Candlesticks Patterns

Hanging Man Candlestick Pattern

Hanging Man Candles Pattern is a potentially bearish reversal commodity trading signal that forms during a commodity upward trend. Hanging Man Candlestick Pattern is named so because it resembles a man hanging on a noose up high.

A hanging man candle pattern has:

• A small body
• The body is at the top
• The lower shadow is 2 or 3 times the length of real body.
• Has no upper shadow or very small upper shadow if present.
• The color of the body isn't important

How to Trade Hanging Man Candlesticks Patterns - How to Analyze Hanging Man Candles Pattern

Technical Analysis of Hanging Man Candlesticks Patterns

The sell signal is confirmed when a bearish commodity candlestick closes below the open of the candlestick on the left side of this hanging man candle pattern.

Stop-loss orders should be placed a few pips just above the high of the hanging man candlestick pattern.