The Hammer and Hanging man candles have small real body (whether green or red) and should have long single sided shadow.
An HAMMER appears on a down trend at or near the bottom which suggests that the market is hammering out a base.
An HANGING MAN appears on an uptrend at or near the top which suggests that the market is creating a top. One must wait for a close under the Hanging man’s real body before becoming BEARISH.
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