Hanging Man

Hanging Man is a very popular pattern among analysts, as is the opposite pattern Hammer. Perhaps it is a consequence of the impressive name that refers to the shape of the candlestick that resembles a hanged man.

The pattern appears in an uptrend as a long line and is characterized by a long lower shadow, at least twice as large as the body. A minimal upper shadow is allowed.

Hanging Man belongs to the group of bearish reversal patterns. However, if a strong support zone has developed before the pattern occurs, it is often only a temporary slowdown in price increases. It works best in a longer uptrend and its occurrence after several days of increases usually does not matter.