A hanging man candle is the exact same as a hammer candle except for the position at which it shows right?. A hammer candle is a bullish reversal candle seen at the end of a downtrend. The candle shows that bears are struggling to push the price down any further and therefore indicates a reversal. Using this logic shouldn’t a hanging man indicate the same thing? When we see a hanging man in an uptrend, It should mean that the bears have struggled to take control and move the price down therefore it is double confirmation that the uptrend will continue.
Where am I going wrong?
For more on these two patterns you can read this chapter on Varsity.
Thank you Mr. Shubh. I have actually already that but it doesn’t clear the doubt.
Hanging man is a bearish reversal pattern that has a long lower shadow and small real body. It appears at the end of the uptrend indicating weakness in further price movement which is formed when bulls have pushed up the prices up to a maximum extent
Here is how it is formed -
How to identify hanging man candlestick pattern -
- There so be no or little upper shadow
- The lower shadow should be long as twice the length of the real body
- The real body should be on the upper side of the candlestick.
Hope this helps!!
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thank you so much
thank you!
We should not use candlesticks in isolation… We have to always use then in confluence…
Now,
As we know the hammer and the hanging man candlestick patterns is the same… Only the position of occurrence and sometimes colour differs… But actually colour of this candlestick doesn’t matter… What matters is the price rejection.
But if we still want to compare this two… Then in hammer candlestick pattern the bears push the price the down first but bulls r so strong that they push the price higher and close above the op of the day… But is case of hanging man same thing happened but the bulls didn’t able to close the price higher than the op of the day…
This can be a point of difference… 