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Log in with DiscordHanging Man
A hanging man has the same basic shape as a hammer, but the context is different. It forms after strength and warns that sellers were able to create a sharp drop during the candle.
At A Glance
- Name: Hanging Man
- Category: Bearish Candle Patterns
- Type: Bearish Warning / Rejection
- Number of candles: 1 candle
- Typical context: After an up move or near an upper area.
How To Identify It
- Body: Small body near the upper part of the range.
- Wicks: Long lower wick with little or no upper wick.
- Relationship: The shape looks like a hammer, but it is discussed after price has already moved up.
Look for a small body near the upper part of the candle and a long lower wick. Then check the prior move. After an up move, that lower wick is read as a warning, not the same as a hammer after weakness.
Context
The long lower wick after an up move shows price dipped sharply during the candle before recovering.
A hanging man matters most after a strong push, near resistance, or when price is extended. The shape tells you price recovered by the close, but the location tells you why the intraperiod drop is worth noticing.
What It Shows
A hanging man shows that price recovered before the close, but the lower wick reveals that sellers were able to hit the stock hard during the candle. After a strong move up, that can be an early warning that momentum is becoming less clean.
What To Watch Next
Watch whether the next candles hold above the hanging man high or start losing the lower wick area. The reaction after the candle decides whether the warning matters.
The read weakens if price holds strong and continues above the candle high. That means buyers absorbed the warning and kept control.
Common Confusion
Hammer and hanging man share the same shape. The prior move changes how traders discuss it.
Key Takeaway
A hanging man is a warning candle after strength. The shape alone is not the point; the prior up move is what changes the read.
Related Lessons
- Shooting Star
- Topping Tail Candle
- Bearish Candle Patterns
- Candlestick Basics