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What is a Hanging Man Candlestick?

The Hanging Man Candlestick is a bearish candle that can signal a reversal. After a strong uptrend, the Hanging Man appears, when the market opens and the stock price continues its rally by opening higher. Then the buying pressure begins to back off and the selling pressure begins to increase. The price drops, but before the end of the session the bulls step back in, driving the price to a new high for the day, leaving a long lower shadow and a short real body. This may be the first sign that the bears are trying to take control.



The Hanging Man needs bearish confirmation before taking action. Confirmation could be a gap down, a long black candlestick, a sell signal from an indicator, or resistance, and always look for strong volume. Leave Hanging Man Candlestick and go back to Japanese Candlestick Charts.


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