Candlestick Patterns · Bearish
Hanging Man
A hammer-shaped candle after a rally.
The long lower shadow shows that sellers were able to push price down during an uptrend. The pattern is not complete until a later candle confirms weakness.
This is an example of how traders often plan the pattern. It is not a promise that price will reach the target.
Identification
- The shape matches a hammer: small body near the high, long lower shadow.
- It prints after a rally, not after a decline.
Market context
Location changes the name and the usual reading. After a rally this shape is a warning, not a buy signal.
Entry example
An example entry is a later close below the hanging man low.
Stop-loss example
An example stop is above the hanging man high.
Target example
An example target is the last higher low of the rally.
Common mistakes
- Calling it a hammer because the shape matches, while ignoring the rally in front of it.
Candlestick and chart patterns are probabilistic observations, not guaranteed trading signals. This page does not report a win rate.