Pattern Type: Reversal (bearish)
Definition:
The bearish counterpart of the hammer, appearing at the top of an uptrend. It signals weakness in buyers.
Key Characteristics:
- Small body near the top of the range
- Long lower shadow
- Context matters — appears after an uptrend
How to Trade:
Indicates potential reversal downward. Needs confirmation with a bearish candle.
Mistakes:
- Ignoring context (at the bottom this is a Hammer, not a Hanging Man)
Conclusion:
Useful in combination with volume and resistance levels.
