The bubble is soon to pop! Technician has given fair warning. Who else has taken the time to look at a yearly time frame?? I trade Hanging Men & Inverted Hammers almost exclusively & there is nothing wrong with this Hanging Man pattern. Is the upper wick a bit large? Yes. Which means there may be still be a bit more demand left however, they are the perfect foot prints of the bigger players (Hanging Men & Inverted Hammers) (In the right context) It tells the story that the big institutions have stepped in secretly with their positions. The dumb money is still buying while the smart players have already positioned themselves short. Visa versa for Inverted Hammers. Traded properly it is by far the BEST R/R trades that can ever be taken! Many times with absolute zero draw down outside of your spread and comm. You only ever want to trade to the direction of the pin. Short on a Hanging Man & Long on an Inverted Hammer. I personally like to trade to the end of the pin then take half my position off & let the other half on as a runner & manage it. If its not going in your direction from the start get out! That's the beauty of these, no need to take any heat what so ever! Small stops/BIG profits! You may get taken out of a trade however many times it will come back into play. If price comes back into the pin area again simply re-enter. Do a little homework on past history & you will see in any market & any time frame they play out like clock work most times. Now there's a few golden nuggets you can take to the bank.
QuantRaccoon
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greatly put.
TheGMan
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Thank you Fortham for the comment!
As stated... "Traded properly it is by far the BEST R/R trades that can ever be taken! Many times with absolute zero draw down outside of your spread and comm."
Well... a picture/chart says a thousand words... As one can see there was absolute zero DD on the open of the new candle in fact she gapped down 198 pts.
As of this time of posting on Friday we are now down 1286 pts! SWEET! As I've said to my protégés on numerous times.... "One could retire very comfortably trading only just the Inverted Hammer & the Hanging Man." & is why I love these patterns & trade them almost exclusively.
"We don't get paid to trade... We get paid to wait" ~TheGMan
I understand your point. I am not trying to be right or wrong here, but by definition a hangman is different. It might be slightly weak during the year but definitely not a yearly reversal.
Check out AUDJPY weekly bar that starts on 15.04.2013. That is a text book hangman with confirmation.
UnknownUnicorn251843
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Enjoyed the post purely for it's unusualness. Feel that the criticism is a bit pedantic as we can pick and choose which posts we want to read. Appreciated and keep them coming.
TheGMan
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Dow Futures Dump 300 Points From New Year's Eve Highs. Mmmm