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Hanging Man Pattern
A bearish reversal candlestick identical to a hammer but appearing at the top of uptrends, signaling potential reversal.
Quick Answer
A bearish reversal candlestick identical to a hammer but appearing at the top of uptrends, signaling potential reversal.
What Is the Hanging Man Pattern?
The Hanging Man has the same shape as a Hammer - small body at the top with a long lower shadow - but appears at the top of an uptrend. It signals that despite buyers pushing prices up, sellers were able to push back significantly during the session. This tug-of-war at a high point can indicate the uptrend is weakening.
How the Hanging Man Forms
- 1Small body near the high of the candle
- 2Long lower shadow (2x body length minimum)
- 3Little to no upper shadow
- 4Forms after an uptrend
How to Confirm the Pattern
✓Appears at resistance level
✓Following candle closes below hanging man body
✓Volume on hanging man is significant
✓Bearish candle follows for confirmation
Best Timeframes for Hanging Man
1H4HDaily
How to Trade the Hanging Man
- →Identify potential top reversals
- →Time exits from long positions
- →Set stops above hanging man high
- →Combine with resistance analysis
Common Mistakes to Avoid
✕Confusing with bullish hammer
✕Trading without confirmation
✕Ignoring the uptrend context requirement
✕Not waiting for bearish follow-through
Detect Hanging Man Automatically
VaultCharts automatically detects Hanging Man patterns on your charts. No manual analysis needed - the pattern is highlighted with entry zones and targets.