Hanging Man /
Dragonfly Doji Bearish
Pattern:
Reversal
Trend: Bearish
Reliability: Low/Moderate
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How to
Identify it
- Small real body at the
upper end of the trading range
- Lower shadow at least
twice as long as the real body
- No (or almost no)
upper shadow
What it
Means
There is a sharp sell off
after the market opens during an uptrend. However, by the
end of the trading day, the market closes at or near its
high for the day. This signifies the potential for further
sell-offs. Since the certainty for a Hanging Man indicator
is low, the trend reversal can be confirmed by a black
candlestick or a large down gap on the next trading day
accompanied by a lower close. If the open and the close are
identical, the indicator is considered a Dragonfly Doji. The
Dragonfly Doji has a higher reliability associated with it
than a Hanging Man.
