A Hanging Man has the same shape as a hammer — small body, long lower wick — but forms after an uptrend. It shows that sellers were able to drive price sharply lower during the session, hinting that the rally may be losing its grip.
How traders read it
- Read it as a bearish warning at the top of an uptrend.
- It is a caution, not a sell signal by itself.
- Look for a lower close next candle to confirm the reversal.
See it in dtcharts
Turn on candlestick pattern detection in the dtcharts terminal — every hanging man is marked on the chart with its historical reliability score, so you can judge how often it has actually played out.