Reversal Candle Sticks Patterns - Hanging Man Candle Pattern

Hanging Man Candles Pattern

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

A hanging man candles pattern has:

• A small body
• The body is at the top
• The lower shadow is two or three times the 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 - Analysis of Hanging Man Candles Pattern

Indices Analysis of Hanging Man Candles Patterns

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

Stop loss orders should be set a few pips just above the high of the hanging man trading candles pattern.