Hanging Man
The Hanging Man is a bearish candlestick pattern that is used to identify potential reversals in the market. It is formed when the open, low, and close of a candlestick are all equal, and the high is significantly lower than the open. This indicates that the buyers have pushed the price up, but the sellers have taken control and pushed the price back down. The Hanging Man is a sign that the current trend may be coming to an end and that a reversal may be imminent.
History of the Term
The Hanging Man candlestick pattern was first described by Japanese rice trader Homma Munehisa in the 18th century. He used candlestick patterns to identify potential reversals in the market and the Hanging Man was one of the patterns he identified. The pattern is still used today by traders to identify potential reversals in the market.
Comparison Table
| Pattern | Open | High | Low | Close |
|---|---|---|---|---|
| Hanging Man | Equal | Lower | Equal | Equal |
Summary
The Hanging Man is a bearish candlestick pattern that is used to identify potential reversals in the market. It is formed when the open, low, and close of a candlestick are all equal, and the high is significantly lower than the open. This indicates that the buyers have pushed the price up, but the sellers have taken control and pushed the price back down. The Hanging Man is a sign that the current trend may be coming to an end and that a reversal may be imminent. For more information about the Hanging Man, traders can visit websites such as Investopedia, TradingView, and StockCharts.
See Also
- Doji
- Hammer
- Inverted Hammer
- Shooting Star
- Engulfing Pattern
- Dark Cloud Cover
- Piercing Line
- Morning Star
- Evening Star
- Tweezer Tops/Bottoms
