$AAPL: Confirming Bearish Hanging Man
Sure, to validate a hanging man candle and confirm its bearish implications, follow these steps:
1. Ensure the hanging man appears after a clear uptrend to suggest a potential reversal.
2. Check the trading volume associated with the hanging man. Higher volume during its formation strengthens the pattern's validity.
3. Check the next candle(s) after the hanging man:
- A bearish candle confirms that sellers are in control.
- If it closes below the hanging man’s body, it adds further validation.
4. Look for other indicators, such as a decline in the Relative Strength Index (RSI) or other bearish patterns.
5. Assess overall market sentiment. Negative news can reinforce it.
6. Support Levels: Verify that the hanging man is near a significant resistance level, increasing the probability of a reversal.
The chart for $Apple(AAPL)$ complies with 1, 3, 4, 5, and 6; when people use S/R levels.
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