This pattern appears at the end of a bull cycle.

The number 1 candle is the Hanging Man candle. The Hanging Man candle has a shadow twice as long as the body – possibly longer. The Hanging Man candle can be a red candle (bearish candle) or green candle (bullish candle).

Candle 2 is a confirmation candle. There are 2 cases:

• If candle 2 is a red candle (bearish candle), we execute a SELL order on the next 3 candle.

• If candle 2 is a green candle (bullish candle), then we are out of the market.

Candle 3 is the entry candle. We execute a SELL order when the 3rd candle opens, and close the order when the 3rd candle closes.