The 'Hanging Man' Candlestick

Question 1

What is The ‘Hanging Man’ Candlestick Pattern?

Answer 1

The Hanging Man Candlestick is a bearish reversal pattern.
The Hanging Man Candlestick has a small real body and a long lower shadow.

Question 2

What criteria need to happen in order for The Hang Man to occur?

Answer 2

The hanging man occurs when two criteria are present:

• The asset has been in an uptrend.
• The candle has a small real body and a long lower shadow.

Question 3

What is the psychology of The Hang Man?

Answer 3

There must be a small real body and a long lower shadow. The lower shadow must be at least two times, preferably three times, the length of the real body.

Question 4

What are some distinguishing features of The Hang Man?

Answer 4

• The longer, the lower shadow, the more meaningful the pattern becomes.
• In most cases, those with elongated shadows outperformed those with shorter ones.
• Look for a strong trading volume.