hanging man candlestick

 Hanging Man candlesticks

 

Hanging Man candlesticks form when a security moves significantly lower after the open, but rallies to close well above the Intra-day low. The resulting candlestick looks like a hammer with a long stick. If this candlestick forms during an advance, then it is called a Hanging Man.
Hanging Man when it occurs in an up-trend and is traditionally considered a bearish (reversal) signal.The Hanging Man candle to be valid, the lower shadow must be at least twice the size of the candle’s body.
the Hanging Man as a consolidation pattern, signaling indecision, and only take moves from subsequent breakouts, below the recent low or high. 

To identify a Hanging Man candlestick pattern, look for the following criteria:
    • The lower shadow should be tall, at least two times the length of the body.
    • There should no upper shadow (though a very small upper shadow is okay).
    • It should occur at the upper end of the trading range.
    • The color of the body isn’t important, although a black body suggests more            bearish results.
    • Price should be in a definite uptrend before the Hanging Man occurs.
    • The Hanging Man must be confirmed on the next candle either with a black            candle or a gap down with a lower close. 

The next candle of the Hanging Man Candle falls below the low , this can be a good entry to go short.