Price at the Precipice: Decoding Hangman & Inverted Hammer Secrets | TAMIL | INVESTING | STOCKMARKE

he Hanging Man and Inverted Hammer are candlestick patterns used in technical analysis to identify potential trend reversals in the market. Both patterns look similar, but their meaning depends on the prevailing trend. Let&break them down: 1. Hanging Man: Appearance: Imagine a small body (rectangle) on top of a long shadow (wick) pointing downwards. The upper shadow (wick) can be minimal or absent. Context: Appears at the peak of an uptrend. Signal: A potential downtrend reversal. The long lower shadow suggests selling pressure pushing the price down from its opening price. However, buyers stepped in and pushed the price back up, closing near the opening price. This indecision between buyers and sellers indicates a possible trend reversal. 2. Inverted Hammer: Appearance: Similar to the Hanging Man, but with a long shadow pointing upwards. The lower shadow (wick) can be minimal or absent. Context: Appears at the bottom of a downtrend. Signal: A potential uptrend reversal. The long upper shadow suggests buying pressure pushing the price up from its opening price. However, sellers stepped in and pushed the price back down, closing near the opening price. This indecision between sellers and buyers indicates a possible trend reversal. #investing #trading #finance #money #wallstreet #financialfreedom #stockmarketforbeginners #investingforbeginners #tradingforbeginners #learntotrade #stockmarketbasics #daytradingstrategies...