Hanging Man

 

 

A pattern which is identified by a small body (white or black) and a long lower shadow. A Hanging Man forms when a security moves significantly lower after the open, but rallies to close well above the intraday low.
 
This is a bearish line if it occurs after a significant UpTrend. If this pattern occurs after a significant DownTrend, it is called a Hammer. An important note is that the Hanging Man should be confirmed, while a Hammer need not be.

 

Recognition Criteria:

·       DownTrend

·       A Spinning Top with a lower shadow greater than N% of the body length AND

        with an upper shadow less than M% of the total line range(High-Low)

·       The closing price of the following line is lower then this line.

 

Function: HangingMan()

Trend: Bearish

Type: Reversal