A hanging man is a type of bearish reversal pattern, made up of just one candle, found in an uptrend of price charts of financial assets. It has a long lower wick and a short body at the top of the candlestick with little or no upper wick.
✍The main difference between hanging man and hammer is that the hammer is bullish in nature while hanging man is bearish.
✍The formation of hammer takes place at the start of uptrend and hanging forms at the start of downtrend.
✍The short trade has to be taken when the price closes below the lower shadow of candle & at the high point stop loss has to be taken.
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