What is the Hanging Man Candlestick?
Hanging Man is a candlestick that forms at the end of a price rally upwards. It turns the price’s orientation from an uptrend to a downtrend, thus it is considered as a bearish signal (we should be looking for selling opportunities).
And since the Hanging Man Candlestick changes the orientation of the price action, it is considered to be a “reversal candlestick pattern”
How does a Hanging Man Candlestick look like?
Hanging Man Candlesticks usually have a mid-sized body and a relatively long lower wick (Also known as shadow or tail).
They usually have very short upper wick, or no upper wick at all.
Where does a Hanging Man Candlestick appear?
Hanging Man Candlesticks usually appear at the end of a price rally upwards (price heading up) and turns that rally into a downwards rally.
What do I do when I see a Hanging Man Candlestick?
Hanging Man Candlesticks are seen by traders as a strong bearish signal, that means when you see this candlestick formation you have to look for a selling opportunity.
However, you have to keep in mind other factors, such as the orientation of the trend, other forex indicators, Fibonacci retracements and all other Forex trading signals.