LogoLogo
Sniper Entry ProEzAlgo ProTradingHubDiscord
  • 🟢Getting Started
    • Why Use EzAlgo?
      • How It Works
      • What We Offer
    • Join EzTrades in Discord
    • What Is TradingView?
    • Memberships
      • 👀TV Crypto Watchlists
      • 💰Affiliate Program
    • 📑Recommended Brokers
    • ❓FAQ
  • 📖User Guides
    • EzAlgo V15.2
    • EzOscillator V6.2
    • Sniper Entry Pro V3.3
      • Displacement
      • Market Structure Shifts
      • High-Probability Setups
      • Dollar-Cost Averaging
    • Installation and Setup
      • How to Setup EzAlgo
      • Getting Started
      • How to Set Alerts
      • How to Update Indicators
      • Risk Management
      • Automation
  • 🎓Education
    • Technical Analysis
      • Price Action
      • Volume
      • Support & Resistance
      • Fibonacci Levels
      • Heikin-Ashi Candles
      • Elliott Waves
      • Chart Patterns
        • Continuation Patterns
          • Flags
          • Pennants
          • Rectangles
          • Triangles
          • Wedges
        • Reversal Patterns
          • Double Bottom / Top
          • Gaps
          • Head and Shoulders
          • Triple Bottom / Top
      • Candlestick Patterns
        • Abandoned Baby
        • Dojis
          • Doji Stars
          • Dragonfly Doji
          • Evening Doji Star
          • Gravestone Doji
          • Morning Doji Star
        • Engulfing
        • Evening Star
        • Hammer
        • Hanging Man
        • Inverted Hammer
        • Morning Star
        • Shooting Star
        • Spinning Top Black
        • Spinning Top White
        • Three Black Crows
        • Three White Soldiers
    • Technical Indicators
    • Risk Management
      • Cross vs. Isolated Margin
      • Dollar Cost Averaging
      • Leverage Trading
      • Spot vs. Margin Trading
    • Trading Rules
  • 🔗Official Links
    • EzTrades Discord
    • Sniper Entry Pro Website
    • EzAlgo Pro Website
    • Indicator Access
    • EzSMC Indicator (Free)
    • TradingHub Discord
    • TradingHub Website
    • YouTube
    • Instagram
Powered by GitBook
LogoLogo

Documents

  • FAQ
  • Introduction
  • Installation Guide

Community

  • Discord
  • YouTube

More

  • Affiliate Program
  • EzTrades Blog
  • TradingView

Copyright © 2024 EzTrades

On this page
  1. Education
  2. Technical Analysis
  3. Candlestick Patterns

Hanging Man

PreviousHammerNextInverted Hammer

Last updated 1 year ago

The Hanging Man is a bearish candlestick pattern that indicates a potential reversal at the end of an uptrend. It's called a "Hanging Man" because the pattern looks somewhat like a man hanging with his legs dangling.

The bullish version of the Hanging Man candlestick pattern is the pattern.

Here's a breakdown of the Hanging Man pattern:

  1. The pattern consists of a single candlestick with a small upper body, little or no upper shadow (or wick), and a long lower shadow. The long lower shadow should be at least twice the length of the body, which suggests that sellers pushed the price significantly lower during the time period, but buyers were able to push the price back up to near the opening price.

  2. The color of the body is not as important in this pattern, but a red or black body is considered more bearish than a green or white body.

  3. The Hanging Man pattern appears during an uptrend. The long lower shadow shows that selling pressure is increasing, but the fact that buyers were able to push the price back up to near the opening price shows that buyers are still fighting.

  4. Confirmation of the pattern's bearish signal comes if the next candlestick after the Hanging Man is bearish and closes below the Hanging Man's close. This would suggest that the sellers have taken control and that the uptrend may be about to reverse.

As with all candlestick patterns, the Hanging Man should be used in conjunction with other forms of technical analysis for confirmation. Traders often look for other signs of a potential reversal, such as an increase in selling volume or bearish signals from technical indicators.

🎓
Hammer