
Hanging Man Bearish
Characteristics:
– Shadow should be 2 times the body length.
– No upper shadow. Or a small shadow.
– Color of the body is not very important. Black or White.
– As with most patterns, confirmation is sought the next day.
Notes:
– Long shadows give greater reversals.
– Gap down the day before mean greater chance of reversal.
– Larger volume on hammer day gives greater probability of reversal.