Hanging man
The same hammer, but at the top after a rise. One shape, the opposite meaning — where price came from is what matters.
Hanging man — what it is?
A hanging man matches the hammer in shape: a small body at the top, a long lower wick. There's one difference — it appears at the top of an upward move.
The reading changes with the location. A long lower wick at the top means price was already being pressed down inside the period, so a seller is present there.
That's an early sign that the buyer is losing control, but not a sell signal in itself.
Hanging man — how it is built?
Tell them apart by context, not by shape: the same candle at the bottom of a move is a hammer, at the top it's a hanging man. A candle's meaning is always set by where it appeared.
Hanging man — common mistakes
Selling off a hanging man inside a strong uptrend.
Identifying the pattern without looking at where it stands.
Treating it as a reversal without a break of structure.
Hunting for it on lower timeframes, where there are dozens of such candles a day.
Related to
Glossary
- Hammer
- a candle with a small body at the top and a long lower wick. It shows that price was pushed down and bought back.
- candle body
- the rectangle between the open and the close.
- long
- buying in expectation of a rise.
- wick
- the thin lines above and below the body that show the high and the low of the period.
- candle
- the element of the chart that shows four prices for a period: open, high, low, close.
- uptrend
- a sequence of higher highs and higher lows.