HANGING MAN for NSE:ASHOKLEY by nalinakshi

TradingView

156 views

what does indicate . Caution friends

Comment: A hanging man candle is identical to the "hammer" candle in its shape but forms at the top of an uptrend indicating a price peak and potential reversion/reversal. While it is traditionally considered a bearish candle, it can also be a continuation candle that sucks in short-sellers and bears and then proceeds to squeeze the price higher. When a pattern becomes too familiar or expected, the market will often form the opposite reaction. This can be expected in a minus sum environment like the financial markets. Therefore, hanging man candles must be approached with several confirmation indicators to determine if it is a bearish reversal signal or a bullish continuation signal in each scenario.

Read more: Hanging Man
Follow us: Investopedia on Facebook

Comment: Bearish Hanging Man
Typically considered a bearish candlestick, an ideal scenario would be preceding series of at least three or more bullish green candles with higher highs. In the aforementioned structure with a small body and long tail, the hanging man candle should form at the top. The next candle needs to close under the body low, preferably at or below the tail.

Read more: Hanging Man
Follow us: Investopedia on Facebook

Comment: as expected candle stick is showing its imortance

Comment: if it breaks the low 144.4 you will see the levels of 141

Comment: hanging man and doji indicated caution. after 4 days false price going up price corrected to 138 and closed at 142

Comments

Thanks for your posting and efforts. I was wondering you considering it Hanging man instead of a Doji. It has no body as open and close are the same.

praveen.bhatiya

@praveen.bhatiya, called doji but itg is hanging man formed at the uptrend.<img src="http://www.onlinetradingconcepts.com/images/candlesticks/HangingManAA.gif" alt="Image result for hanging man doji"/>

nalinakshi

@nalinakshi, you may be correct as there is no body. but somehow i felt it as hanging man. still i feel it is caution and ashok leyland may extend upto 250 and you may witness selling or price reversal

nalinakshi

@nalinakshi, You are right about the caution these candles are foretelling.

nalinakshi

@nalinakshi, Thanks for your prompt reply.