potentially bearish pattern

Forexgen and Hanging Man is a potentially bearish pattern which occurs during an uptrend. It is named because it looks like a hanging man with dangling legs.

Recognition Criteria:

• A long lower shadow which is about two to three times of the real body.
• Little or no upper shadow.
• The real body is at the upper end of the trading range.
• The color of the body is not important, though a black body is more bearish than a white body. (Confirmation is suggested.)

Engulfing is a reversal pattern, especially after a prolonged trend. It has a long body that totally engulfs the prior day's body.

Recognition Criteria:

• The first day's color indicates the trend of the trading day.
• The second real body should have the opposite color of the first real body.
The second day's body should completely engulf the previous day's body.