What Happens in Trade after a Hanging Man Candlestick Sticks Setup?
Hanging Man candlesticks setup is a potentially bearish reversal signal that occurs during a upward trend. It's named and called so because it looks like a man hanging and dangling on a noose up high.
A hanging man candle has:
- A small body
- The body is at the top
- The lower shadow is 2 or 3 times length of real body.
- Has no upper shadow or very small upper shadow if present.
- The color of the body isn't important
What Happens in Trade after a Hanging Man Candles Pattern?
Technical Analysis of the Hanging Man Candles
The bearish reversal sell signal gets confirmed when a bearish candle closes below the open of the candlestick onto the left side of this hanging man candle setup.
Stop Loss orders should be placed a few pips just above the high of the hanging man candle once a xauusd trader opens a trade based on this candlesticks setup formation.
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