What is Hanging Man in Forex Trading?

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Hanging Man is kind of candlestick pattern formed when price of significant currency or security moves lower than its opening but close above the opening price. The resulting candle look like a lollipop with long empty shadow. Hanging man candle stick pattern occurs during the uptrend which indicate that price may fall down.

It is bearish reversal pattern that occurs after an uptrend. The lower long shadow of hanging man shows that sellers have control on movement of market. Hanging man pattern warns that market price can fall anytime. Traders usually exit long trades and enter shorts trade until ne next candle confirm the market movement.

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