Home » Hanging Man

Hanging Man

« Back to Glossary Index

A hanging man is a bearish reversal pattern that is formed after the bullish trend and can be seen in candlestick patterns. The formation of a candle is identical to the hammer – it has a long lower shadow (wick), small upper body, and little or no upper shadow (wick). It shows the weakness in a bullish trend and symbolizes a potential selling trend in the market.

However, the major difference between a hammer and a hanging man is that the hammer is followed by a bearish trend while a hanging man is followed by a bullish trend.

Monetary Policy

Monetary policy refers to the actions taken by a nation’s central bank to influence the availability and cost of money and credit to Read more

Kathy Lien

Kathy Lien is an expert in global currencies, author, and Managing Director of BK Asset Management. For retail FX traders back Read more

European Parliament

The European Parliament is the European Union’s law-making body. It is directly elected by EU voters every 5 years. It is a Read more

Open Position

An active trade that has yet to be closed.

« Back to Glossary Index