The Hanging Man candle is also a bearish trend reversal signal, however, comes with lower conviction than the Shooting Star. It is a candle that needs a subsequent confirmation move lower to have conviction.

candle pattern hanging man

Having been trending higher in previous sessions, the price Open is at or near the current session High. Selling pressure takes hold almost immediately. However, there is a late intraday rally as the buyers recover. The price Close is at, or near to, the session High. Although the selling pressure has not been sustained, it signals that the buyers are not as strong as in previous sessions. A reversal could be coming.

hanging man chart

Using Hanging Man signals

hanging man table

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