🕯 Candlestick Mastery #9: The Hanging Man

🔹 What It Is –

A single-candle bearish reversal pattern that appears after an uptrend. The candle looks similar to a Hammer but has a very different meaning when it forms at the top of a rally.

🔹 Key Features –

Small body near the top of the candle.

Long lower shadow (at least twice the size of the body).

Little or no upper shadow.

🔹 Meaning –

It signals that selling pressure entered the market during the session. While buyers pushed the price back up, the selling shows potential weakness in the uptrend — a warning of a possible reversal.

🔹 How to Identify –

✅ Appears after a strong uptrend.

✅ Long lower wick, small upper wick.

✅ Color can be red or green, but red Hanging Man is more bearish.

🔹 How to Trade It –

1️⃣ Always wait for confirmation — a bearish candle closing below the Hanging Man’s body.

2️⃣ Place stop-loss above the high of the Hanging Man.

3️⃣ Profit target at next support level.

💡 Pro Tip: Stronger when volume is high and the next candle is decisively bearish.

#Binance #CryptoTrading #CandlestickPatterns #priceaction