The man
the Barish version of the hammer is called the hanging man the hanging man is formed when the opening
price and the closing price are corny me at the same level.
The vertical line represents the lowest trading price of that specific timeframe.
The hanging man has the same exact characteristics of the hammer.
The length of the lower shadow must be at least twice the size of the body of the candle.
The longer the shadow the stronger the potential for a reversal there is no upper shadow.
It's a perfect hanging man however if there is a very small upper shadow the formation is the currency
the hanging man pattern.
Here is the main difference between the hammer and the hanging man.
The bullish version of the hammer appears at the bottom of a downtrend.
Whereas the hanging man.
The bearish version of the hammer appears at the top of an upturned.
If the closing price is higher than the opening price the color of the candle is green.
If the closing price is lower than the opening price the color of the candle is red and red.
Hanging men has more baddish energy than a green hangin man.
A green hanging man is more bullish energy than red and hanging and the color of the candle is not as
important as the position of the him and the hanging men are located in the train
when the hanging man appears at the top of an uptrend.
After a series of green candles and possibly in overbought conditions these indicates that reversal
is about to occur.
The hanging man is consider a bearish reversal pattern.
However for the bearish confirmation is required.
If the next day the price opens near or below the previous day close and the Bears the sellers are taking
the price down.
This is the bearish confirmation that the reverse has occurred.
It is time to sell or to go short.
On the other hand if the next day the price opens above or near the previous day's close and the Bulls
the buyers start taking the price up these indicates that they are still in an uptrend.
Be patient and wait for further bearish patterns to form.