Hi, guys and welcome to NerdsHD in today’s post we will be talking about Japanese Candle stick patterns and to be specific Hanging Man and Inverted Hammer Candle Stick Patterns. So in Hanging Man and Inverted Hammer Binary Options Strategy, we will be mainly focusing on these patterns in order to find good and accurate reversal points. Finding Hanging Man and Inverted Hammer Candle Stick Patterns is very easy you can do them manually or use any free & paid Meta Trader 4 indicators.
What is Hanging Man Candle Stick Pattern:
Hanging Man is formed at the End of (bullish) Upwards trend & when it is formed it indicates reversal points, it means market is losing it’s upwards momentum and is ready to move downwards. Single Hanging Man candle as it name suggest looks like a hanged man.
It has hammer at top and fairly large stick in the bottom. It can be bullish or bearish candle.
And hanging man Japanese candle stick pattern looks like this.
What is Inverted Hammer Candle Stick Pattern:
Inverted Hammer is formed at the End of (bearish) Downwards trend & when it is formed it indicates reversal points, it means market is losing it’s downwards momentum and is ready to move upwards. Single Inverted Hammer candle as it name suggest looks like a Inverted Hammer.
It has hammer at bottom and fairly large stick in the Top. It can be bullish or bearish candle.
And Inverted Hammer Japanese candle stick pattern looks like this.
Hanging Man and Inverted Hammer 60 Sec Binary Options Strategy:
Candle Time Frame: 1 Minute
Expiry: 60 Seconds
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Now there are two options you can identify Hanging Man and Inverted Hammer Candle Stick Patterns manually or you can use MT4 Indicator.
Mt4 Indicator: You can download this Mt4 Indicator Click Here and use it’s demo version it works like charm.
For this article i will be using indicator to identify patterns but you can also do them manually.
Make sure only Hanging Man and Inverted Hammers are on in this indicator and turn of all other patterns.
Now we will be discussing how you can identify correct Hanging Man and Inverted Hammer patterns.
You can add bollinger band to further assist you in identifying pattern, Pattern which is formed in the bottom band will be inverted hammer and in upper bollinger band that would be hanging man.
Also hanging man pattern candle should be above the previous candle & Inverted hammer pattern candle should be below previous candle.
As soon as you see any of these patterns are formed & you get all confirmations place trade accordingly, for Inverted Hammer Call & for Hanging Man Put.
Also Read: Martingale Binary Options Strategy
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