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When does the Hangman appear in your charts?
We all want to know when to sell before the price crashes. The Hanging Man pattern tries to tell you.
This candlestick appears after the price has risen quite a bit. Its shape is very characteristic: a small body at the top and a long wick downwards. That long wick is the important part—it represents the selling attempts that pushed the price down during the candle.
What you see in a Hangman:
Tiny real body → Buyers and sellers nearly tied in this candle
Super long Mecha → Someone tried to raise the price ( maybe the bullish buyers ), but the selling pressure was stronger.
The golden rule: The wick must be at least twice the length of the body.
What does it mean in practice?
The bulls enthusiastically raised the price, but the bears took control and brought it back down. This says: there is too much supply at this level, the rally could run out of steam.
⚠️ Attention:
Do not sell just because you see a Hangman. Combine it with volume, RSI, or nearby resistances. A false positive can cost you.
The Hangman is a warning signal, not a definitive sell order.