Hanging Man

 

The Hanging Man is a type of candlestick pattern that typically appears at the end of an uptrend and can signal a potential reversal or a bearish move. Characteristics of the Hanging Man candle:

1. Shape: It has a small body, which can be either bullish or bearish, located at the top of the candlestick.

2. Long Lower Shadow: The most notable feature of the Hanging Man is its long lower shadow, which should be at least twice the length of the body.

3. Little to No Upper Shadow: The upper shadow is usually very small or nonexistent, indicating that the price opened near the high for the period but was pushed down during the session.

4. Location: The pattern appears after an uptrend, signaling that there might be a reversal or weakening of the current bullish trend.

5. Interpretation: The Hanging Man suggests that while buyers tried to push the price higher during the session, sellers came in strong and pushed the price lower, leaving a long lower shadow. If it is followed by a bearish candlestick or confirmation, it could indicate a potential price drop or reversal.