HANGING MAN - CANDLE FORMATION (BEARISH REVERSAL)
The hanging man is a bearish candle formation that forms at the top of an
uptrend. It begins with a strong sell off at the open but ends up closing
near the open. It suggests price action may decline in the near future.
NOTE:
TRIGGER:
uptrend. It begins with a strong sell off at the open but ends up closing
near the open. It suggests price action may decline in the near future.
NOTE:
- This is only a valid formation when at a key level of resistance. The hanging
man can be both a positive or negative candle it just needs to close near the open
with little to no wick.
TRIGGER:
- I don't often use this formation for a trigger into a trade but rather for confirming a bearish reversal.