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Hanging Man

Bearish Candlestick Pattern

Tobi Frenzen
Author
Tobi Frenzen
Published
October 28, 2024
Author
Tobi Frenzen
Published
Oct 28, 2024
Hanging Man Candlestick Pattern
Hanging Man - Bearish Single Candlestick Pattern

Pattern Details

Hanging Man

Bias

Bearish

Type

Single Candlestick Pattern

Description

Small body with a long lower wick at the top of an uptrend, resembling a hammer but bearish.

Meaning

Signals potential bearish reversal if confirmed by selling candles afterward.

What is the Hanging Man pattern?

The Hanging Man candle forms at the top of an uptrend, with a small body and long lower wick. This pattern suggests that sellers attempted to drive prices down, but buyers regained control. However, the presence of a long lower shadow hints that sellers may be gaining strength, potentially signaling a bearish reversal.

The Hanging Man pattern reflects market psychology where buyers might be overextended, making it a valuable tool for identifying potential tops in trends. For those looking to deepen their understanding of reversal patterns, The Chart Guys offer comprehensive guidance on how to interpret and trade patterns like the Hanging Man.

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