Hanging Man
A Hammer-shaped candle appearing at the top of an uptrend — the long lower wick hints that selling pressure is creeping in — a bearish warning.
The Hanging Man has the same anatomy as the Hammer — small body near the top, long lower wick — but it appears after a sustained uptrend, not a downtrend. Location changes everything.
The long lower wick shows that during the session, sellers pushed price sharply lower, even though buyers recovered it by the close. At the top of a trend that recovery may be the last one. Confirmation (a bearish close below the Hanging Man's body the next session) is essential before acting on this warning.
Example
After a two-month rally, a Hanging Man prints on lighter-than-usual volume. The next day opens flat and then sells off hard, closing below the Hanging Man's body — confirmation that buyers are exhausted.
Related Terms
Bearish Engulfing
A large bearish candle that completely wraps the prior bullish candle's body — supply takes control — a reversal warning at the top of an uptrend.
BeginnerEvening Star
A three-candle bearish reversal: a long bullish candle, a small indecision candle gapping higher, then a large bearish candle reclaiming the midpoint.
BeginnerHammer
A single candle with a small body near the top and a long lower wick — buyers rejected a sharp intra-session sell-off — a bullish reversal signal.
BeginnerShooting Star
A small body near the bottom with a long upper wick at the top of an uptrend — buyers were rejected at the high — a bearish reversal warning.
Beginner