🔻 Bearish Confirmation in Hanging Man Candle 📊
The Hanging Man is a bearish reversal pattern that often appears at the top of an uptrend. It warns traders of potential selling pressure ahead.
🔍 How to Confirm the Reversal:
1️⃣ Small Real Body at the Top
– Signals buying momentum is fading.
2️⃣ Long Lower Shadow
– Indicates sellers pushed price down hard, but buyers barely recovered.
3️⃣ Bearish Follow-up Candle
– A red candle closing below the Hanging Man confirms bearish intent.
4️⃣ Volume Spike
– High volume adds credibility to the reversal.
5️⃣ Break of Key Support or Trendline
– Confirms the setup is valid for a potential short entry.
📉 If all conditions align:
Look for a sell opportunity
🎯 Stop-loss: Just above the Hanging Man’s high
