Candlesticks - Vol 6 - Hanging Man

[FXSwissTrader]

Would you say that the hanging man does not apply to the forex market but should be intepreted as a hammer instead? Thank you. These videos are great. Thank you for uploading.

[YourTradingCoach]

@FXSwissTrader ,

Hi FXSwiss Trader, Thanks. I'm glad you've enjoyed the videos. A hanging man is a top reversal pattern. A hammer is a bottom reversal pattern. Although the individual candle's look the same, the context is different. Both apply to forex.

[trungfu2]

At 6:01 from the right over, the 17th candle(red) between 2 long green) is that a shooting star w/o a confirmation ?

[YourTradingCoach]

@trungfu2

I'm not 100% sure which you're referring to, but from the left, the 17th could be a potential hanging man, not a shooting star. From the right, the 17th is not between 2 long green candles. It's all irrelevant though. Without confirmation, or without considering context, it's not a trade.

[Mattoman501]

Another excellent video! Thank you.

[rofsjan]

What a great explanation!

[angie3311]

Thank you for such a simple explanation and I do agree with comments > A great presentation! Will go to your website. Keep it up Coach! Much appreciated.

[YourTradingCoach]

@angie3311

Thanks angie3311,

I'm glad to hear you've enjoyed the candlestick vids.

All the best with your trading,

Lance

[Jugdesi]

You are amazing. But how can one predict tomorrows opening. Will it be high or low I am still guessing

[YourTradingCoach]

@Jugdesi

Hi Jugdesi,

There's no need to predict the next open at all. Trading is about reacting to what does happen - not predicting future price action.

Cheers,

Lance.

[everestmindz]

Thanks for this.

[TheRussianRastaman]

hi Lance!

i just wanted to thank you on your SIMPLE explanations of candlestics! and i had a question: when should i look for patterns- over a short periods of time, like 5 or 10 minutes, or long time frame, say monthly?

thanx!

Will.

[YourTradingCoach]

Hi TheRussianRastaman,

Thanks for your feedback.

Candlestick reversal patterns are applicable in any market and any timeframe, provided it has sufficient liquidity to ensure smooth price flow.

If it's a rarely traded instrument such that it jumps all over the place (eg. some option contract charts) then ignore the candlestick patterns.

Bring up your favourite instrument and scan the historical data on multiple timeframes. You'll find candlestick patterns on all t/f.

Cheers,

Lance.

[affectedstudent]

thanks

[mengnash]

Hi leng,

Thanks for the info

iannya amt berguna dan bagus in Bahasa Melayu

Sila datang ke kuala Lumpur ....

Seee U Lenggggg

May God Blesss Us

[YourTradingCoach]

Ahhh! You got me there.

Thanks,

I think,

Happy trading,

Lance

[andrewhurrell]

This is a brilliant and wonderfully simple explanation of a highly complex and involved subject. Well done and a big thanks for posting this.

Question though, you say the hanging man sentiment is expressed in an up trend. does this up trend have a minimum criteria? Can a couple of minutes be an up trend a couple of hours, a couple of days etc etc?

Also I am doing my brains longing US crude right now, given the chart would you hold or abandon ship!

[YourTradingCoach]

Hi Andrew,

There are as many definitions of a trend as there are markets to trade. For me, it's just a series of higher swing highs and higher swing lows. And yeah, they exist on all timeframes.

Re Oil: The correct action is to follow whatever was documented in your trading plan prior to entering the trade. You did have a plan, didn't you! :-)

I'm actually not licenced to provide advice, and have no interest in it at all. I'd rather empower others to make their own decisions.

Cheers,

Lance

[rmil0767]

Hi Lance

Your a fantastic teacher and presenter. Thankyou.

Quick Question. My knowledge of the economy/market is very slim but I can easily grasp the candlestick trend analysis. The problem is while this analysis is working for me I keep getting slammed by external economic issues. Is there an easy way to check for upcoming things that may effect the market? I'm generally trading gold? Thank again

[YourTradingCoach]

Hi rmil0767,

Re economic events.. except for unexpected news, these all come out at pre-planned times. Any economic calendar will do, but the one I use is the forexfactory calendar. I can't post links in here, but you should easily find it by searching for forexfactory calendar. Take note in particular of those events classified as HIGH (red) and MEDIUM (orange) potential impact.

Not sure of the individual impact of each econ release on gold. You'l have to check that yourself.

Cheers,

Lance.

[kxcxixn]

this is what I dont get: shooting star and hangman seem to be opposites, yet they both result in the same downward moving trend--why is that?

[YourTradingCoach]

Hi kxcxixn,

Think of the psychology of both bulls & bears in each pattern. With shooting star - price rises from lows to high, and is then driven very convincingly back down to close at or near low. Bears have played a strong hand. Bulls will doubt their position, and some will exit on continuation of the move below the candle (adding selling pressure to the current bears). The shooting star is therefore a bearish top reversal pattern. (cont. in next response due out of room)

[YourTradingCoach]

(continued from previous response)

With hanging man, candle gaps up to open at new highs, but is then driven strongly back down. The bulls manage to drive it back up this time (therefore it's not as bearish as the shooting star), however the pattern has shown strength in the bears. If we get subsequent confirmation through price below the pattern again, bulls will sell adding selling pressure to the bears. Therefore bearish pattern (but only after confirmation).

[kxcxixn]

yeah, i guess that does make sense--thanks for the response!

take care.

[poty1231]

why r u giving out this stuff for free???????? what is the reason behind it????????

[YourTradingCoach]

Hi poty1231,

Thanks for your comment. Why am I giving this info away for free? Please see the FAQ page on my website for an explanation.

Of course, you're more than welcome to pay if you feel there's great value in the information - donations are always accepted. :-)

Cheers,

Lance.