What is a Hanging Man Candlestick in Stocks?
What Does Hanging Man Candlestick Mean? Hanging Man Candle Definition
Hanging Man stocks candles pattern is a potentially bearish reversal stocks signal which occurs during a stocks upwards trend. It is 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 two or three times length of the real body.
- Has no upper shadow or very small upper shadow if present.
- The color of the body isn't important
What's a Hanging Man Candlestick in Stocks? - Hanging Man Candlestick Pattern
Technical Analysis of Hanging Man Stocks Candles
Sell trading signal is confirmed when a bearish candle closes below the open of the candlestick on the left side of this hanging man candlestick pattern.
Stop orders should be placed a few pips just above the high of the hanging man candle-stick.
