It is an extremely bearish topping formation.
blu
Did Anyone Notice the Hanging Man on the Close?
Started by
blustar
, May 02 2008 07:18 PM
14 replies to this topic
#1
blustar
-
- Traders-Talk User
- 6,574 posts
blustar
Posted 02 May 2008 - 07:18 PM
Someone here can post it for me, but it is glaringly obvious!!!
It is an extremely bearish topping formation.
blu
It is an extremely bearish topping formation.
blu
#2
Mtrader
-
- Traders-Talk User
- 1,221 posts
Member
Posted 02 May 2008 - 07:29 PM
Only if market gap down to confirm.
You are on your own. This is for demonstration only.
JV
JV
#3
borland
-
- Traders-Talk User
- 276 posts
Member
#4
scott in Wisconsin
-
- Traders-Talk User
- 238 posts
Member
Posted 02 May 2008 - 07:43 PM
Someone here can post it for me, but it is glaringly obvious!!!
It is an extremely bearish topping formation.
blu
You mean like the ones we had on the QQQQs:
4/15
4/17
4/22
4/25
Each of which was followed by the market moving up?
Somehow, I'm not that worried by it.
Now, the best 10 trading days of the month are done next Wednesday, so I AM concerned about the market after that, until May 23rd.
http://www.cxoadviso...al/blog8-24-06/
But not because of a candle.
Scott
Bearish Hanging Man Pattern. This is a bearish reversal pattern that marks a potential change in trend. However, its reliability is low and it definitely requires confirmation.
#5
U.F.O.
-
- TT Patron+
- 5,605 posts
U.F.O.
Posted 02 May 2008 - 08:00 PM
Yeah, I did. Potentially very negative. Here's the chart and an explanation of what a "Hanging Man" is.
U.F.O.
Hanging Man
U.F.O.
Hanging Man
"Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote!"
~Benjamin Franklin~
~Benjamin Franklin~
#6
U.F.O.
-
- TT Patron+
- 5,605 posts
U.F.O.
Posted 02 May 2008 - 08:20 PM
"You mean like the ones we had on the QQQQs:
4/15
4/17
4/22
4/25"
Scott. Grab hold of yourself. You can't actually try to equate any of these candlesticks to today's price action. You have to learn the difference between a "hanging man" and a "hammer at low", meaning a hammer from a low dollar price. The difference between these two patterns is night and day. The bottom line is the question...is the hammer at a recent TOP or BOTTOM on a price basis? This hammer is at a recent top, meaning bearville.
U.F.O.
4/15
4/17
4/22
4/25"
Scott. Grab hold of yourself. You can't actually try to equate any of these candlesticks to today's price action. You have to learn the difference between a "hanging man" and a "hammer at low", meaning a hammer from a low dollar price. The difference between these two patterns is night and day. The bottom line is the question...is the hammer at a recent TOP or BOTTOM on a price basis? This hammer is at a recent top, meaning bearville.
U.F.O.
"Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote!"
~Benjamin Franklin~
~Benjamin Franklin~
#7
selecto
-
- Traders-Talk User
- 6,871 posts
Member
Posted 02 May 2008 - 08:22 PM
Some authorities would not call that a hanging man, as the tail is not long enough, unlike the one that printed 5 days ago which didn't produce bearish squat.
As for it being "incredibly bearish," here is a screen shot from Bulkowski's site:
As for it being "incredibly bearish," here is a screen shot from Bulkowski's site:
Edited by selecto, 02 May 2008 - 08:30 PM.
#8
Taz
-
- Traders-Talk User
- 178 posts
Member
Posted 02 May 2008 - 08:25 PM
A candlestick reversal signal simply implies a change in trend ergo either market moving sideways for a period before moving in the same direction again or actually reversing in the other direction.
I think the hanging man is powerful but if there is no follow through in the next session or two chances we we are seeing consolidation (which itself is a reversal of the prior uptrend) and that the uptrend will reestablish itself once consolidation has run its course.
In short a hanging man in an uptrend is a signal to close longs. Confirmation is required before initiating shorts.
Dan
#9
Taz
-
- Traders-Talk User
- 178 posts
Member
Posted 02 May 2008 - 08:38 PM
Some authorities would not call that a hanging man, as the tail is not long enough, unlike the one that printed 5 days ago which didn't produce bearish squat.
As for it being "incredibly bearish," here is a screen shot from Bulkowski's site:
I actually think proves the forecasting ability of the hanging man. Given hanging man most likely occurs at top of wave 1,3 or 5 it is only going to lead to a decent move down in 1/3 occureneces yet its probability is much greater hence the usefullness of the signal. In any event in the other 59% where market continued higher I bet you that in most of those instances market did consolidate before moving higher so that ultimaelty this signal is much more powerfil than the unshaves masses would believe
Dan
#10
SemiBizz
-
- Traders-Talk User
- 23,217 posts
Volume Dynamics Specialist
Posted 02 May 2008 - 08:52 PM
No worries mate, we had a bearish upthrust today, we're going to test lower on Monday something like 1397 SPX/2455 NAS, then we'll see if there's any volume or momentum behind it... The way I read the tape today, we're going to hear something over the weekend regarding another fire in the financial district... take your pick, bond insurers, banks, brokers, or credit card issuers....
Add 2 and 2, with the rearrangement of the bailout terms today, and the weak tape... there's a turd in the punch bowl somewhere...
Price and Volume Forensics Specialist
Richard Wyckoff - "Whenever you find hope or fear warping judgment, close out your position"
Volume is the only vote that matters... the ultimate sentiment poll.
http://twitter.com/VolumeDynamics http://parler.com/Volumedynamics
Richard Wyckoff - "Whenever you find hope or fear warping judgment, close out your position"
Volume is the only vote that matters... the ultimate sentiment poll.
http://twitter.com/VolumeDynamics http://parler.com/Volumedynamics
