A is a pattern that forms at the end of an uptrend. It is created when there is a significant sell-off near the market open, but buyers are able to push this stock back up so that it closes at or near the opening price. Generally, the large sell-off is seen as an early indication that the bulls (buyers) are losing control and demand for the asset is waning.
A 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 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, candles must be approached with several confirmation indicators to determine if it is a reversal signal or a continuation signal in each scenario
In the aforementioned structure with a small body and long tail, the candle should form at the top. The next candle needs to close under the body low, preferably at or below the tail.
so one has to wait for confirmation after seeing the hanging man