Homes of male strategy. Experience used! -Analysis and prediction -June 5, 20125

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Most merchants will agree that there is little pleasure than to ride steadily. tendency To normal. Unfortunately, as the old proverb progresses, “all good things must be over”. This is especially true in transactions, so it is essential to understand when moving to the shortcomings and how to manage the risk accordingly. In this article, you will share what is Hanging Man CandleStick Reversal Pattern, and how to exchange it.

What is a hanging man?

The hanging candle (appropriate name) is a candlestick formation with a rapid increase in sales pressure at the height of the existing rise. This is generally caused by many market participants who believe that the market reaches the highest level and surpasses the Bulls. This can be observed in Gbpusd If it is clear that the red candle appears at the top of the upward trend as a result of the mass sales pressure, the chart below.

GBP/USD hanging male candlestick

Collection of hanging man candles

The hanging man candle is characterized by a small real body, the top shadow (wick) at all, and more than twice the shadow of the body.

Upward trend: Hanging men can only identify after being formed at the top of the upward trend.
Opening level: Hanging Man Candle can be green candles (strong) or red candles (weak).
Top shadow: The small top shadow indicates that there is an attempt to maintain the current upward trend before the price drops significantly. pound movie.
Long and low shadowThis is probably one of the most insightful observations in the candle. Bulls’s finish price is somewhat close to the opening level, but it depicts a significant sale before it still falls.
FinishIn this case, the closed level was under the opening, so confirm that this is a weak man. candle.

Hanging Man Candlestick Trading Signals identify

Hanging Man Candletick can be used to identify a short deal (weak market), just as long shades represent mass sales. True tests on the legitimacy of the hanging man candlesticks are often revealed in the follow -up activities of the chart. If the next candle moves further and breaks down the short -term uptrend line, it can be seen as a continuous downtown trend. Another possible entry level is that the market enters the transaction after the lowest level of the hanging candle.

Homes of male trading?

It is important to see Hanging Man Candle Formation regarding long -term trends. The best way to do this is Multi -time frame analysis. Use a longer time frame chart, such as daily or weekly periods, starting with the market, observing the direction of the market in the long term. Then use a small time frame chart (4 hours or 2 hours) to analyze the ideal entry point for transactions.

Step 1: Identify the long -term trend

Look at the chart on a longer time frame (perhaps every day chart) and get an idea about the direction the market is heading. You do not want to trade in the opposite direction of the long -term trend.

Step 2: Discover the ideal entry point

Use a short time frame chart (4 hours chart) to identify the ideal entry point. Hanging Man Candle Formation provides a signal for a short deal.

Step 3: Use support indicators

Do that relative strength index Do you see if the market has changed to a decline? Did the 20 SMA line crossed the 50 SMA line? Do Hanging Man Candletick appears near the top of the short -term rise? Is there a relevant fibonacci Retression level nearby?

Step 4: Trading

Find the entry point in the low places of the hanging male candlestick. If the weak view of the market is correct, follow -up prices will fall.

Step 5: When you terminate the deal?

It is best to always have a compensation ratio of 1: 2 or more whenever you enter a deal. You are in danger of half of what you are trying to get. In other words, the distance from the entry level to the profit level should be twice as much as the level of stop loss.