After a previous upside rally, if a small red candle with a very small or no tail and a wick double times longer than the body, this is called a Hanging Man pattern. . Hanging Man is a powerful signal for a trend reversal. Short position can be taken and the entry can be placed on the lowest of the Hanging Man. Stop loss can be placed on the top of the Hanging Man. The difference between the price of the top and the lowest of the Hanging Man should be calculated and doubled. And that should be placed below the entry as the target.
‘NOOSE’ TIGHTENS FOR SUNPHARMA
