What Happens after a Hanging Man Candlesticks Pattern? - Is Hanging Man Candlestick Bullish or Bearish?
Hanging Man candlesticks pattern is a potentially bearish reversal signal which occurs during a forex uptrend. It is named so because it resembles a man hanging on a noose up high.
A hanging man candle has:
- A small body
- The body is at the top
- The lower shadow is 2 or 3 times the length of the real body.
- Has no upper shadow or very small upper shadow if present.
- The color of the body is not important
What Happens after a Hanging Man Candlesticks Pattern? - Hanging Man Candlestick Bearish Pattern
Technical Analysis of Hanging Man Forex Trading Candlesticks
The bearish reversal sell signal is confirmed when a bearish candle closes below the open of the candle on the leftside of this hanging man candle pattern.
Stop Loss orders should be set a few pips just above the high of the hanging man candlestick once a trader opens a trade based on this candle-sticks pattern formation.
