easy · Volume Price Analysis
A trader identifies a 'Hanging Man' candle at the top of a bullish run.
Why is this candle interpreted as bearish despite its hammer-like shape?
- The small body indicates the market has quietly entered a genuine state of 'no supply'.
- The long lower wick shows that buyers have finally exhausted their available capital.
- It validates that insiders are patiently building fresh inventory for the next leg up.
- It represents the first sign of significant selling pressure appearing in the uptrend.
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