medium · Volume Price Analysis
A 'Hanging Man' candle appears at the top of a sustained bullish trend.
Why is its long lower wick interpreted as a sign of weakness rather than strength?
- It indicates that significant selling pressure appeared for the first time, making the market vulnerable despite the recovery.
- The long lower wick confirms that insiders are still aggressively buying at every dip.
- It shows that the market is 'oversold' and ready for a final markup surge.
- It is an anomaly because wicks are only allowed at the bottom of trends.
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