Single-candle pattern · bearish bias
Hanging Man candlestick pattern
A hanging man has the same shape as a hammer, a small body near the top and a long lower wick, but it appears after an advance. It shows sellers were able to push price sharply lower during the session.
How to identify it
- A small body near the top of the range.
- A lower wick at least about twice the body.
- Little or no upper wick.
- It appears after a rise.
Where it matters: Appears after an advance, near a high.
What it means
It warns that selling interest appeared, even though buyers recovered by the close. It is a caution signal rather than a reversal on its own.
What confirms it
A following candle that closes below the hanging man's body.
What invalidates it
A close above the hanging man's high.
Common mistakes
- Treating it as bearish without confirmation; many hanging men are followed by further gains.
- Mixing it up with a hammer, which needs a prior decline.
Frequently asked questions
Is the hanging man bearish?
It has a bearish bias after an advance, but it needs a bearish follow-up candle to confirm.
Why does the hanging man look bullish?
Its shape is the same as a hammer. What changes the meaning is where it appears in the trend.
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Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.