Hanging Man Trading System

Hanging Man Trading System for MetaTrader 5

Hanging Man Trading System is a price action indicator for MT5 designed to detect bearish reversal patterns and display structured trading levels on the chart.

Overview

Hanging Man Trading System detects single-candle bearish reversal structures that form after an upward move, where price trades lower during the bar but closes near the high.

This pattern can be used to identify possible exhaustion after buying pressure and to prepare for bearish continuation when confirmed by follow-through.

All calculations are based on completed bars only.

Detection is non-repainting. Signal values do not change after the bar is closed.

The indicator can draw Entry, Stop Loss, and Take Profit levels directly on the chart and track signal progress after detection.

Detection Logic

The detection model evaluates each completed candle through several structural conditions.

These conditions can include:

• Long lower shadow relative to total range

• Small upper shadow relative to total range

• Body positioned near the upper part of the candle range

• Minimum body size relative to ATR

• Range size limits relative to ATR

• Uptrend context before the pattern

Patterns that do not meet the selected structural requirements are ignored.

The indicator focuses on bearish Hanging Man detection only.

Quality Evaluation

Each valid pattern can be evaluated through a multi-factor quality model.

The scoring process can include measurements such as:

• Lower shadow ratio

• Body position within the range

• Upper shadow ratio

• Body relative to ATR

• Close position within the previous candle range

• Relative range compared to the prior candle

Signals below the selected minimum threshold can be filtered out automatically.

Multiple detection modes are available, including Standard Mode, Strict Mode, and Custom Mode.

Entry and trade planning

For confirmed setups, the indicator can project bearish breakout levels using pending-style entry logic below the pattern low.

For each valid setup, the indicator can display:

• Entry level

• Stop Loss level

• Up to four Take Profit