Hanging Man after upward trend

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As can be mentioned, in the past the Hanging Man as well as the Hammer as the best known candles could often be confused with each other. The two candles do not have a direct difference in their appearance, but in their connection with the chart. The Hammer, which can be set on a falling price as an indication that a price is rising, is exactly the opposite of the Hanging Man. The Hanging Man hangs almost at the top of the price at a price high until it then falls again. The difference is therefore only the position of the candle where it can be found. Often the candles also occur outside the Bollinger Bands, which can be taken as an indication that prices are oversold or overbought. The financials are to be seen with a clear plus or minus as a prerequisite in order to clarify to what extent the candles have a meaning for the price.

The signals as a combination

Messages emanating from the candles can never be used as a sole indication. It is often the case that the candles can provide good indications in principle. On the other hand, they should also be seen as clear confusion candles. If a hanging man is recognised, this already means that the price will now fall. However, a subsequent rapid continuation of the price upwards can also happen, which would be extremely annoying for the trader. For this reason, experts in chart analysis never trade without combining the most important indicators. It is best to have a motley mix of the most important indicators available to combine with the Hanging Man or even the Hammer. The best indicators to use in addition are for example:

Not all indicators have to be used to be able to recognise a trend or to analyse a price increase or decrease in https://exness-ch.club/. Rather, the point is that the basic core of the Kruse should not be overvalued until another indicator is used for further evidence. Especially when investing in shares and relying on a hanging man, a lot of money can often be wasted. Due to the uncertain investment that many people rely on, the entire capital can be put to waste. Here it makes sense if the said stop loss functions are to be used in order to be able to avoid losing too much income.


The conclusion to trading with Hanging Man

It would be better if, in addition, another indicator is used to ensure that a price drop is detected. A price drop would mean that the stochastic, for example, would meet and overlap in the upper price range, so that a falling price could be recognised and traded. Other indicators would be trend lines and trend channels, which should also be drawn in. The more indicators that can be used and interpreted, the more successful a trade can be concluded. As a result, the particular prices must of course continue to be analysed in order to be able to make first-class forecasts.