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  1. #1
    Rookie Member CynthiaHZ's Avatar

    How to trade on hanging man candlestick chart pattern? !!!

    Binary options sometimes is recognized as gambling, for traders either buy call or put and there are only two results: you lose all your investment or win a predetermined percentage of profit. However, binary options is not gambling indeed, you can predict the price direction based on technical analysis and fundamental analysis. As a newbie trader, i started to learn how to employ candlestick chart to help me find trading opportunities several weeks ago and it worked. I want to share some hints here and hopefully you can also gain your profit by using my methods.

    Hammer
    Hammer is one of the unique pattern in candlestick chart that can indicate clear direction. It is a price pattern that occurs when an asset trades significantly lower than its opening, but*rallies*later in the day to close either above or close to its*opening price. To be technical, the length of a hammer’s lower shadow is twice or more of the real body. This pattern forms a hammer-shaped candlestick as it shows below.
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    Hanging man
    Hanging man is a bearish*candlestick*pattern that forms at the end of an*uptrend. It is created when there is a significant sell-off near the market open. Therefore. If a hanging man pattern appears, put options can be purchased at the time when hanging man is completing and a new candlestick occurs. Here is an example how i employ hanging man to gain profit.
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    As I observed the 1-minute chart of EUR/JPY, I found that a hanging man is forming at the end of a continuing uptrend. I closely watch it and once the hanging man is completed, that is around 12:02, i immediately buy a 60 Seconds option of EUR/JPY with $100.
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    I waited patiently for the put option to expire, and finally i easily got $172 return back. That’s how easily we can employ candlestick chart to maximize our profit.
    Last edited by CynthiaHZ; 02-05-2016 at 02:37 AM.

  2. #2
    Legendry Member milos's Avatar
    Iuse hammer candlestick. It is needed to see in trading tools and indicators on the forum.

    Hey guys, can it find hanging man on the forum? I tried to help Cynthia but I failed.

  3. #3
    Legendry Member Michael Hodges's Avatar
    I don't know, she said it pretty good, the only thing is the candle needs to be confirmed to be valid, the candle could just be a test of resistance, also the size of the candle and its position relative to the long term resistance levels, moving averages and etc must be considered.

  4. #4
    Rookie Member CynthiaHZ's Avatar
    Quote Originally Posted by Michael Hodges View Post
    I don't know, she said it pretty good, the only thing is the candle needs to be confirmed to be valid, the candle could just be a test of resistance, also the size of the candle and its position relative to the long term resistance levels, moving averages and etc must be considered.
    Yes, you are right.To verify a hanging man is valid or not, the hammer needs to be appeared in a continual uptrend. as i said, the hammer has a long lower shadow twice of the real body, and it has to be a bearish candle.

  5. #5
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by CynthiaHZ View Post
    Yes, you are right.To verify a hanging man is valid or not, the hammer needs to be appeared in a continual uptrend. as i said, the hammer has a long lower shadow twice of the real body, and it has to be a bearish candle.
    you don't make any sense... a hammer occurs at the bottom of a downtrend, a hanging man within an uptrend, the candles are similar but not the same in terms of placement or trading. Both are dojis. What I said was that if a potential hanging man occurs in an uptrend it needs to be confirmed by an additional candle, like a dark cloud cover or piercing pattern.... you cant' make a trade simply because a doji appears...

  6. #6
    Rookie Member CynthiaHZ's Avatar
    Quote Originally Posted by Michael Hodges View Post
    you don't make any sense... a hammer occurs at the bottom of a downtrend, a hanging man within an uptrend, the candles are similar but not the same in terms of placement or trading. Both are dojis. What I said was that if a potential hanging man occurs in an uptrend it needs to be confirmed by an additional candle, like a dark cloud cover or piercing pattern.... you cant' make a trade simply because a doji appears...
    whether it is a hammer or hanging man, the shape of the candles look like a hammer with a long lower shadow twice of the real body. you said it right, a hammer occurs at the bottom of a downtrend, a hanging man within an uptrend.A hanging man is a BEARSISH candle occurs at the end of an uptrend. once it is completed, a bearish trend can be confirmed. The doji you mentioned is totally not the same thing. doji is a candle with both long upper and lower shadow, while its real body is quite short as it closes and opens at the same price. The candle appears in my chart is not a doji at all, it is a hanging man.

  7. #7
    Veteran Member randy1953's Avatar
    Quote Originally Posted by CynthiaHZ View Post
    whether it is a hammer or hanging man, the shape of the candles look like a hammer with a long lower shadow twice of the real body. you said it right, a hammer occurs at the bottom of a downtrend, a hanging man within an uptrend.A hanging man is a BEARSISH candle occurs at the end of an uptrend. once it is completed, a bearish trend can be confirmed. The doji you mentioned is totally not the same thing. doji is a candle with both long upper and lower shadow, while its real body is quite short as it closes and opens at the same price. The candle appears in my chart is not a doji at all, it is a hanging man.
    You are absolutely correct but many times here what is right and correct is very hard to show in this forum and if you press you get attacked.
    No I am not hijacking this thread . Many traders think anykind of candle with a very long wick is a doji. In truth most times a doji has no body at all. This is what I see when you say doji. Sorry tried to attached a pic the site does not let me lots of bugs in trying to attach a view-ableClick image for larger version. 

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    Good luck

  8. #8
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by CynthiaHZ View Post
    whether it is a hammer or hanging man, the shape of the candles look like a hammer with a long lower shadow twice of the real body. you said it right, a hammer occurs at the bottom of a downtrend, a hanging man within an uptrend.A hanging man is a BEARSISH candle occurs at the end of an uptrend. once it is completed, a bearish trend can be confirmed. The doji you mentioned is totally not the same thing. doji is a candle with both long upper and lower shadow, while its real body is quite short as it closes and opens at the same price. The candle appears in my chart is not a doji at all, it is a hanging man.
    no, you're not quite right ... a doji is ay candle with little to no body and long shadows, either upper or lower or both. A hanging many is an interpretation of a doji signal.

  9. #9
    Legendry Member Michael Hodges's Avatar
    Randy's chart proves my point.. a doji is any candle with long shadows and small to no body, shadows need to be on the long side else the candle may just be a spinning top. In the chart the Dragonfly doji could be a hanging man, or a hammer and be either bullish or bearish depending on where it occurs in relation to price action. Same for the gravestone, it could be shooting star/pin bar depending on price action.

    As I said before, the single candle signals given by dojis require confirmation, you can't just trade bearish because a possible hanging man occurs, it's not a hanging man if price continues to move higher..

  10. #10
    Specialist Member Million Dollar Baby's Avatar
    Even though the discussion has been very well so far and I think there is nothing much to add.

    Just wanted to share my view about candle stick patterns that they are good as long as you confirm them with something else. I confirm patterns with S/R levels and overall longterm trend. I have never tried them on 1 min trades (as shared by CynthiaHZ). But it would be really interesting to see if these patterns work with high probability on short timeframes.

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