hard · Volume Price Analysis
A 'Hanging Man' candle appears at the top of a 3-week rally in a stock. It has a long lower wick and ultra-high volume.
Why is this considered a bearish signal rather than a bullish hammer?
- The candle is an anomaly because the effort was low for the result.
- It shows significant selling pressure appeared for the first time in the trend.
- A Hanging Man candle always signifies a 'No Demand' bar.
- It confirms that buyers have completely withdrawn from the market.
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