LESSON 3
Good day everyone. I hope you have benefited immensely from our previous posts on Technical Analysis. Our aim is to see that you are armed with the necessary knowledge and technical know how of Technical Analysis so that you can make your own research not to provide you with signals. Our goal is to ensure that you can conduct your own research and trade independent of others.
Our candlestick of the day is the "Hangman."
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The hangman or the hanging man is another one candle reversal pattern that has the same physical appearance as the hammer candlestick but their position or location in a trend differs. If you can remember from our previous lesson, we assert that the colour of the candlestick does not matter but rather the position is what matters.
The hangman candlestick appears during an uptrend (I.e it appears after a rally) unlike the hammer which appears at the bottom of a trend (downtrend). The appearance of the hangman in a trend signals that the uptrend is over and reversal is possible with the appearance of the appropriate confirmation candle. When the hangman appears on a trend it is advisable for you to exit your long position and wait for confirmation candle to appear.
Three images are attached for reference and clearance. The first image emphasises the difference between a hangman candlestick and the hammer candlestick. The colour doesn't matter. The second and third images shows the hangman in action in an uptrend. You can see how the trend got reversed owing to the appearance of the hangman. Dear students, read carefully and study the attached images. If there is any question you can ask in the comment section. For more educative contents like, follow and share. Stay tuned for our next lesson. Thank you.
