This is a sample of Brian’s email newsletter, The Cullen Outlook.
This is from the Formation Finder portion from May 20th.
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Good Morning—
There is a “HANGING MAN” in the July CRUDE OIL:
(GCLN6)
The mini contract is 1/2 the size of the standard contract…$500.00 per $1.00 move
(QGN6)
The “HANGING MAN” Defined:
- This is a reversal candlestick.
- It is a Bearish Formation that forms at the end of an uptrend.
- It is the exact opposite of the Bullish Hammer formation that forms on the bottom of a downtrend.
- See the US Dollar Bullish Hammer from May 4th as an example of that set-up.
- The market opens, trades quite a bit lower but rallies into the close to settle at or near the open price .
- This is an early indication that sellers have entered the market. Or at the very least that buying momentum is decreasing.
- This candlestick gets more attention when the next day trading heads lower and closes below the Hanging Man’s lower wick. This “next day” is known as the confirmation candle.
- Look for the lower wick of the candle to be 2x the width of the body of the candle.
- There should be little to no upper wick indicating that the market failed to trade higher at any point in the day.
- It is important to note that this is NOT a sell signal, rather a heads-up to put this market on your radar to be ready.
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Learn Futures Technical Analysis from a Pro with The Cullen Outlook
The Cullen Outlook is a futures trading newsletter for those wishing to follow the moves of Brian Cullen, an experienced technical trader. He’ll identify charts setups, provide direct trade recommendations and plans, and share other useful insights to help you become a better technical trader.
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