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Bearish Red Hanging man (Short Trade)

This is a single candlestick pattern. A sell signal is generated when a paper umbrella is seen at the top end of the rally.

Do note while evaluating a hammer or hanging man the colour of the paper umbrella does not matter. The emphasis is more on the fact that the opening and closing are quite close to each other.

Buy script

Sell script

Additional notes

The buy script is just a place holder to provide an exit for the short trade. The trader is free to replace with any exit strategy that he deems suitable.