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[ajitg76]

The Hanging Man is a bearish signal indicating that the prior uptrend is about to end and may reverse to a downtrend or move sideways. This pattern is an indication of a financial instrument's SHORT-TERM outlook.

In cases where a major uptrend exists followed by a Hanging Man, the investor should consider vacating long positions
A Hanging Man can be confirmed by a bearish gap between the Real Body of the Hanging Man and the open on the next session. In other words, the investor should look for the next session opening lower than the Real Body of the Hanging Man. The greater the gap, the stronger the signal.

A Hanging Man may be a stronger signal if the subsequent session shows a black Real Body with a close lower than the close of the Hanging Man.

A Hanging Man may be a stronger signal if it is followed by another, well-formed Hanging Man in the next session.

The longer the Lower Shadow of the Hanging Man the greater the significance of the pattern.

The smaller the Real Body and the Upper Shadow the more significant the pattern