The works of a Hanging Man is as follow:the market opens up and then it moves sharply down and it shoots up high again to the area of the opening and closing or very near. So every one that got long at the beginning gets encouraged by the close and does not exit its long, seeing the recuperation and new longs get at the end of the market.(say around 10900).
Next day if the market opens up below the opening-close (10900), this mere action prompts all these longs to exit the market and it continues south.As I said above, it really works well when the Hanging Man happens at the top of a rally. We will see tomorrow.
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