- This topic has 6 replies, 4 voices, and was last updated 8 years, 1 month ago by
.
-
Posts
-
isnt it a trend reversal pattern, isnt it supposed to be found at the end of the bullish trend.
@ Halima, valid point, hanging man is reversal and found at the end of the bullish trend. In this example until upto the prior 2 candles it is bullish trend even though the trend is small.
The rationale behind this short trade.,
– it is bullish trend though its is small
– the first red candle is dark cloud cover with low volume
– the second one is doji which shows indecisive
– the third one is hanging man which I see as confirmation for reversal
If you go by book this is not a hanging man since its didnt appear at the top of the bullish trend but 2 candles later. My idea is be flexible with patterns at the same time within the limits.
- You must be logged in to reply to this topic.
