4th October 2011,Tuesday
HANGING MAN
HANGING MAN
If the above pattern occurs after an uptrend,it is referred to as HANGING MAN. Basically this is reversal pattern, and the scrip or index can come down after the formation of the pattern.
The body of this pattern is small and there is no upper shadow (high).It has only a long Lower Shadow (low).The more longer the shadow,the more the reliability of the pattern. Irrespective of the color of the candle,the Hanging man pattern has significance and is a signal that the market may go down. Still,it has been observed that,the red hanging man is a more confirm signal.
Usually,one will see this patterns formed at major market tops.
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