To trade the pattern, enter the confirmation candle. Confirmation came on the next candle, which closes above the hammer's closing price.
You need to enter on confirmation candle. This is because sometimes the pattern may present a false breakout. A stop loss can be placed from a hammer low or a recent low.
Hangman can initiate a short position on the next candle of the pattern, or you can exit your long positions after identifying a pattern.
If you are an aggressive trader, you should take a short position on the Hangman candle instead of the next candle. You can stop your profitable profit near the recent high of the hanging main pattern and the recent low of the pattern.
You need to enter on confirmation candle. This is because sometimes the pattern may present a false breakout. A stop loss can be placed from a hammer low or a recent low.
Hangman can initiate a short position on the next candle of the pattern, or you can exit your long positions after identifying a pattern.
If you are an aggressive trader, you should take a short position on the Hangman candle instead of the next candle. You can stop your profitable profit near the recent high of the hanging main pattern and the recent low of the pattern.