The Hanging Man Entry Flashcards
1
Q
What type of patterns is The Hanging Man?
A
The Hanging Man is a bearish reversal pattern.
2
Q
What is The Hanging Man candlestick?
A
The hanging man is a bearish candlestick pattern and refers to the candle’s shape and appearance (Small body/Long tail), representing a potential reversal in an uptrend.
3
Q
Distinguishing Features of the hanging man?
A
In most cases, those with elongated shadows outperformed those with shorter ones.
4
Q
How to Trade the Hanging Man?
A
- Stop Loss: Place a stop-loss order above the high of the hanging man candle.
- Entry: Near the close of the down candle following the hanging man.
- Target: Risk-to-Reward ratio of 1:1, 1:2, or 1:3.
5
Q
How does The hanging man occur?
A
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.
