Hanging Man

The hanging man is a bearish reversal candlestick pattern that occurs after an uptrend. It is characterized by a small body and a long lower shadow. The long lower shadow indicates that there was a lot of selling pressure during the day, but the buyers were able to push the price back up to the opening price. The hanging man is considered to be a bearish signal, but it should be used in conjunction with other technical indicators to confirm the pattern.

Here are some tips for trading the hanging man pattern:

• Look for the pattern to form after a strong uptrend.
• Wait for the price to close below the open of the hanging man before entering a short position.

The hanging man is a useful tool for traders who are looking to short the market, but it is important to remember that no single pattern is 100% reliable, and traders should always use caution when trading.