A hanging man is a reversal pattern that, when seen after a chart rally, indicates the completion of an uptrend. This pattern has a long lower shadow and a small body. The hanging male pattern shows candles with a long shadow and a small main body. Main bodies are near daily highs. If this candlestick pattern occurs in an uptrend, their appearance can be a warning for the end of that trend. For complete information, we suggest you read the technical analysis training article.

The hanging man pattern is formed when the number and power of sellers starts to increase relative to the buyers. After the trading session starts, the sellers cause the price to fall by their behavior, but during the session, the buyers bring the price back to the starting areas of the session. The formation of this pattern during an upward trend indicates the end of buyers’ power to continue the upward trend. If the candle is created in the resistance ranges, the created pattern is a male hanging pattern and warns of the return of the trend and its downward trend.

Confirmation condition 1: The body of the candle is at the highest part and there is no upper shadow, or if there is, it is very small.

Verification condition 2: The length of the lower shadow must be at least twice the length of the main body.

The hanging man pattern is actually the hammer pattern that forms at the top of an uptrend. By observing the confirmation factors and the high strength of the pattern, you can trust the return of the upward trend and the falling of the chart more.