How to spot a Hanging Man
- Small body at the top
- Long lower wick, about twice the body or more
- Forms after a rise, ideally near resistance
What the Hanging Man tells you
In an uptrend, sellers managed to push price well down during the period. Buyers recovered it by the close, but the sudden selling shows that the rally may be losing support.
How traders use it
- Wait for the next candle to close below the hanging man body
- Exit longs or look for shorts after confirmation
- Place the stop above the hanging man high
Common mistakes
- Shorting immediately without confirmation
- Confusing it with a hammer after a decline
- Trading it against a strong higher-timeframe uptrend
See it on a real chart · EP 01Candlestick Patterns for BeginnersWatch the free lesson →
Questions about the Hanging Man
Is the hanging man bearish?
It is a bearish warning when it forms after a rally, especially at resistance. Confirmation from the next candle matters a lot.
Why does a hanging man look like a hammer?
The shape is identical. Only the location differs: a hammer comes after a fall, a hanging man after a rise.
For education only, not financial advice. The chart is an illustration of the pattern, not real market data. No pattern works every time; always use a stop-loss.