CFD US SPX 500 Candlestick
Candlestick trading CFD US SPX 500 Candlestick
Hanging man is reversal pattern.
This formation typically happens after a prolonged uptrend but rallies to close well above the intranet low. this pattern is a warning of potential price change.
When you see the Hammer form in a downtrend this is a reversal sign long lower shadow represents a period of trading.
Where the sellers were initially in control but the buyers were able to reverse that control and drive prices back up to close near the high for the day.
After seeing Hanging man pattern you have to wait for the next candlestick higher close than the close of the previous closed to confirm that the buy trade.
