What is a Hanging Man Candles Pattern in Commodity Trading?
What Does Hanging Man Candle Mean? Hanging Man Candle Definition
Hanging Man commodities candles pattern is a potentially bearish reversal commodity trading signal that forms during a commodity upwards trend. It's named so because it resembles a man hanging on a noose up high.
A hanging man candlestick 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
What is a Hanging Man Candlestick in Commodity Trading? - Hanging Man Candle Pattern
Commodities Trading Candles Pattern
The sell signal is confirmed when a bearish candle closes below the open of the candlestick on left-side of this hanging man candle pattern.
Stop orders should be placed a few pips just above the high of the hanging man candle-stick.
