PATTERN: REVERSAL

TREND: BEARISH

RELIABILITY:LOW/MODERATE

How to identify it:

·  Small real body at the upper end of the trading range

·  Lower shadow at least twice as long as the real body

·  No (or almost no) upper shadow 
 What it Means:
There is a sharp sell off after the market opens during an uptrend. However, by the end of

the trading day, the market closes at or near its high for the day. This signifies the potential

for further sell-offs. Since the certainty for a Hanging Man indicator is low, the trend

reversal can be confirmed by a black candlestick or a large down gap on the next trading

day accompanied by a lower close. If the open and the close are identical, the indicator is

considered a Dragonfly Doji. The Dragonfly Doji has a higher reliability associated with it

than a Hanging Man.