Hong Kong
2024-12-24 14:52
Industry5⃣Hanging Man & Hammer (Reversal Patterns) ⛓🔨
The Hanging Man and Hammer are both candlesticks with small bodies and long lower wicks, but they have different meanings depending on the trend they appear in:
🔹Hammer: Appears during a downtrend and signals a potential bullish reversal. The long lower wick shows that sellers tried to push the price lower, but buyers stepped in and pushed the price back up.
🔹Hanging Man: Appears during an uptrend and signals a potential bearish reversal. The long lower wick shows that while buyers initially pushed the price higher, sellers later took control, pushing the price back down.
Key Point: Both patterns are more reliable when followed by confirmation from the next candlestick. The Hammer suggests that buying is starting to regain control, while the Hanging Man signals that sellers might soon take over.
Example: A Hammer after a downtrend shows that buyers are regaining control, potentially signaling the end of the downtrend. Conversely, a Hanging Man after an uptrend signals that the buying momentum might be weakening, and a reversal could be imminent.
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5⃣Hanging Man & Hammer (Reversal Patterns) ⛓🔨
Hong Kong | 2024-12-24 14:52
The Hanging Man and Hammer are both candlesticks with small bodies and long lower wicks, but they have different meanings depending on the trend they appear in:
🔹Hammer: Appears during a downtrend and signals a potential bullish reversal. The long lower wick shows that sellers tried to push the price lower, but buyers stepped in and pushed the price back up.
🔹Hanging Man: Appears during an uptrend and signals a potential bearish reversal. The long lower wick shows that while buyers initially pushed the price higher, sellers later took control, pushing the price back down.
Key Point: Both patterns are more reliable when followed by confirmation from the next candlestick. The Hammer suggests that buying is starting to regain control, while the Hanging Man signals that sellers might soon take over.
Example: A Hammer after a downtrend shows that buyers are regaining control, potentially signaling the end of the downtrend. Conversely, a Hanging Man after an uptrend signals that the buying momentum might be weakening, and a reversal could be imminent.
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