1015-Bearish Hanging Man

It is very similar to the Hammer, at the top end of an uptrend. If you see the correct indication of the Hanging Man signal, your probability of being on the right side of a trade increases dramatically.

The Hanging Man is a single candle. It is identified because it looks like the Hammer at the top of an upward trend. It has a small body at the top of the trading range, with the lower shadow being at least two times greater than the body length.

Rules:

• The lower shadow should be at least two times the length of the body..
• The real body is at the top end of the trading range. While a black body is slightly stronger, it is not required to signal the reversal.
• There should be little or no upper wick.
• Watch the next day to ensure the reversal is not a “fake”