Candlesticks – Vol 6 – Hanging Man
www.yourtradingcoach.com – Candlestick Charting – Vol 6 – Hanging Man
9 Responses to “Candlesticks – Vol 6 – Hanging Man”
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thanks
Ahhh! You got me there.
Thanks,
I think,
Happy trading,
Lance
Hi leng,
Thanks for the info
iannya amt berguna dan bagus in Bahasa Melayu
Sila datang ke kuala Lumpur ….
Seee U Lenggggg
May God Blesss Us
Hi Andrew,
There are as many definitions of a trend as there are markets to trade. For me, it’s just a series of higher swing highs and higher swing lows. And yeah, they exist on all timeframes.
Re Oil: The correct action is to follow whatever was documented in your trading plan prior to entering the trade. You did have a plan, didn’t you!
I’m actually not licenced to provide advice, and have no interest in it at all. I’d rather empower others to make their own decisions.
Cheers,
Lance
This is a brilliant and wonderfully simple explanation of a highly complex and involved subject. Well done and a big thanks for posting this.
Question though, you say the hanging man sentiment is expressed in an up trend. does this up trend have a minimum criteria? Can a couple of minutes be an up trend a couple of hours, a couple of days etc etc?
Also I am doing my brains longing US crude right now, given the chart would you hold or abandon ship!
yeah, i guess that does make sense–thanks for the response!
take care.
(continued from previous response)
With hanging man, candle gaps up to open at new highs, but is then driven strongly back down. The bulls manage to drive it back up this time (therefore it’s not as bearish as the shooting star), however the pattern has shown strength in the bears. If we get subsequent confirmation through price below the pattern again, bulls will sell adding selling pressure to the bears. Therefore bearish pattern (but only after confirmation).
Hi kxcxixn,
Think of the psychology of both bulls & bears in each pattern. With shooting star – price rises from lows to high, and is then driven very convincingly back down to close at or near low. Bears have played a strong hand. Bulls will doubt their position, and some will exit on continuation of the move below the candle (adding selling pressure to the current bears). The shooting star is therefore a bearish top reversal pattern. (cont. in next response due out of room)
this is what I dont get: shooting star and hangman seem to be opposites, yet they both result in the same downward moving trend–why is that?