Hanging Man candlestick pattern is one of the Japanese candlestick patterns.
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What is the Hanging Man candlestick pattern?
Name: The Hanging Man candlestick appears at the end of an uptrend or near resistance levels.
Description:
The candle body is small (usually green or red).
Its lower shadow is very long, while the upper shadow is very short or non-existent.
Meaning:
Indicates a possible bearish reversal of the market after an uptrend.
Represents weak buying forces, which may lead to selling pressure and a change in trend.
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How to read the pattern?
1. Candlestick appearance:
It occurs at the end of an uptrend.
It expresses market hesitation after attempts to rise.
2. Confirmation of the reversal:
Confirmation comes if the next candle (usually a red candle) closes below the opening price of the Hanging Man candlestick.
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Strategy and Expectations:
If the next red candle closes at lower prices, entering the market to sell may be a good option.
The expectation is that the market will fall after the candle appears due to the weakness of the uptrend.
If you need more details or clarifications, I can provide additional explanation.