Hanging Man candlestick pattern
A hanging man has the same shape as a hammer, but it appears after a rise. It is a warning that sellers managed a big dip even though buyers recovered most of it.
How to spot a Hanging Man
- A small body near the top and a long lower wick, like a hammer.
- It forms after an advance, not a decline.
- Little or no upper wick.
Memory tip: Hammer shape, but after prices rose.
What it usually means
Sellers showed up with enough force to drive price well down within the candle. Buyers recovered, but the move shows the uptrend may be tiring.
What traders wait for
The next candle closing below the hanging man's body is the usual sign that the warning is playing out.
Common mistakes
- Treating it as a sell signal by itself. It is a warning that needs confirmation.
- Mixing it up with a hammer. Same shape, opposite location, opposite meaning.
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Play Candlr freeQuestions people ask
What is a Hanging Man candlestick?
A hanging man has the same shape as a hammer, but it appears after a rise. It is a warning that sellers managed a big dip even though buyers recovered most of it.
How do you spot a Hanging Man?
A small body near the top and a long lower wick, like a hammer. It forms after an advance, not a decline. Little or no upper wick.
Is a Hanging Man bullish or bearish?
It is usually read as bearish (a possible move down). Sellers showed up with enough force to drive price well down within the candle. Buyers recovered, but the move shows the uptrend may be tiring.
Is a Hanging Man reliable on its own?
No pattern is a guarantee. The next candle closing below the hanging man's body is the usual sign that the warning is playing out. Always decide your risk before you act, and treat patterns as clues, not predictions.
Related patterns
- Doji Open and close are almost equal, so buyers and sellers fought to a draw. It signals indecision.
- Hammer A small body with a long lower wick after a drop. Sellers pushed price down but buyers pulled it back up.
- Inverted Hammer A small body with a long upper wick after a drop. Buyers are starting to test higher prices.
- Shooting Star A small body with a long upper wick after a rise. Buyers pushed price up but sellers rejected it.
Candlr is educational. Candlestick patterns describe what price did, they do not predict what it will do next, and nothing here is financial advice. Trading involves a high risk of loss.