Reversal Stock Indices Candle Patterns - Hanging Man Candle Pattern

Hanging Man Candle Pattern

Hanging Man Candles Pattern is a potentially bearish reversal stock indices signal which occurs during a upwards indices trend. Hanging Man Stock Indices Candle Pattern is named so because it resembles a man hanging on a noose up high.

A hanging man candlestick pattern has:

• A small body
• The body is at the top
• The lower shadow is two or three times length of the real body.
• Has no upper shadow or very small upper shadow if present.
• The color of the body is not important

How to Trade Hanging Man Candles Patterns - How to Interpret Hanging Man Candles Pattern

Technical Analysis of Hanging Man Candles Patterns

The sell stock indices signal is confirmed when a bearish indices candlestick closes below the open of the candlestick on the left side of this hanging man candle pattern.

Stop Loss orders should be set a few pips just above the high of the hanging man candle pattern.