Hanging Man
A single-candle reversal pattern that forms after a rise, with a small body and a long lower wick. Its shape is the same as a hammer; the difference is the context. It can show price dropping clearly within the candle and the rise meeting serious selling for the first time.
How it forms
- It follows a clear rise. The same shape after a decline is called a hammer.
- The lower wick is at least twice the length of the body.
- The upper wick is absent or very short: no more than about a tenth of the candle's full range (high to low).
- The body is small and sits in the upper third of the range. Its colour does not change the rule; a red body is considered slightly stronger.
The hanging man is considered one of the single candles that most needs confirmation. Since it still closes near its high, many sources look for the next candle to close below the hanging man's body.
What it suggests
After the open, sellers push price clearly lower. Towards the close, buyers carry it back near the opening level. The candle may look like a recovery, but the long lower wick can show that a strong wave of selling has appeared for the first time during the rise.
In an uptrend, candles usually close near their highs and spend little time lower down. A hanging man shows buyers are still strong, but sellers are now present. This is a hint that the rise may be starting to tire, not proof that the direction has changed.
When it strengthens, when it weakens
Strengthens
- Forming at a resistance zone
- A clear rise before the pattern
- A lower wick that is very long relative to the body
- A red body
- The next candle closing below the hanging man's body
- Forming on a higher timeframe (4H, 1D)
Weakens
- Forming in a flat, directionless market
- A noticeable upper wick
- The candle being very small compared with those around it
- A strong support zone just below
- The next candle closing above the hanging man's high
The MarketLevelMap view
How it relates to zones
A hanging man means most at a resistance zone. Price has reached the zone but pulled back clearly within the candle. This can be read as sellers appearing at the zone and the rise being tested for the first time.
The tip of the lower wick is a useful reference. If the wick reaches down to a support zone just below, that zone is where sellers got to, and it is worth watching whether it is tested again. If later candles close below the tip of the wick, the selling seen inside the candle may be starting to hold across candles too.
A hanging man that forms between zones, in open space rather than at resistance, is considered weaker. The long lower wick may then be ordinary noise.
When it is invalidated
If price closes above the hanging man's highest point, the bearish scenario is considered invalid. It means the rise has absorbed the selling and carried on.
If the hanging man formed at a resistance zone, a close above the zone means the same.
Often confused with
For general information only. Not investment advice.Last updated: