A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits
by Michael C. Thomsett
Hammer and Hanging Man
Among single-session candlesticks, the hammer and hanging man are unusual. They have the same attributes, but they have diametrically opposed signaling, depending on where they appear. This signal consists of a small real body and a lower shadow that extends farther than the range of the real body. The real body can be either white or black.
When this appears at the top of an uptrend, it signals a reversal to the downside and is called a hanging man. When it appears at the bottom of a downtrend, it signals a reversal to the upside. As with all indicators, these should also be independently confirmed by other candlesticks, Western signals, volume, moving averages, or momentum oscillators. They also apply in all types of ...
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