The Hanging Man Man is a reversal pattern that has a small-body candle and a lower shadow about twice or more the body's size. It is preferable that there is no top shadow, but if there is, it needs to be very small (smaller than body size). Also known by the English term Hanging Man, the Hanged Man is very similar to the Hammer and occurs after a downward correction or after an uptrend. This reversal pattern accepts both candle colors, however, a red colored candle means that the closing price was lower than the opening price, strengthening the sell signal.
- Occurs after a bull move.
- Formed by just one candlestick with a small upper body and a long lower shadow.
- The body color is not important, it means the candle can be bullish or bearish.