Hanging man is a Single candlestick pattern indicates the Bearish reversal. Hanging man pattern appears at the top of the bullish trend. This pattern is witnessed in the chart of “CASTROL INDIA LTD” on 19-Dec-2017.
The Conditions and qualification of Hanging man pattern:
1) The lower tail should be theĀ minimum of two times of its body. – Yes. This is qualified.
2) Hanging man should be Red in color. – Yes.
3) The upper tail should be invisible or very small in size. – Yes. A very small upper tail is noticed.
4) Volume should be High during Hanging man day. – Yes. This is also qualified.
The Trading plan: SHORT
Entry Price: Rs. 207.8 (LOW of the hanging man)
Stoploss: Rs. 212.7 (HIGH of the hanging man)
Target Price: Rs. 202.7 (Considering Risk to Reward of 1:1 Ratio)
The result of the trade: Target achieved in 3 days.
Hi,
Hanging man has a small body with a long upper tail pattern. Hanging man is a bearish reversal pattern, as the buyers were initially in charge but yet the sellers were capable to reverse that control and drive prices back up to close near the low for the day.
Conditions
Hanging man pattern has a small body with a long upper tail.
The lower tail should be invisible or very small in size.
Volume should be high during hanging man day.
Hanging man should be red in color.
Hanging man occur after a price incline
Dear Naresh,
Thanks for your comments.
Request you to please check again. The Hanging man should have long LOWER TAIL.
If the upper tail is longer it is Shooting star & Inverted Hammer.
Please let me know if I am still wrong.
Hi sir,
You can find similar patterns with different names and there is some confusion prevailing around an inverted hammer, shooting star and hanging man patterns. To avoid such confusion, understand the demand and supply characteristic of every candlestick pattern.
please let me know if you need any further assistance
Thanks a lot Mr. Naresh. Itās well understood. Thanks again for your support.