Single-candle pattern

Hanging Man candlestick pattern

A single candle that traders read as bearish warning. How to recognize the Hanging Man, what it suggests about buyers and sellers, and where it matters.

Bearish warning1 candle

Faded candles show the trend before the pattern. The dashed box marks the pattern.

How to recognize it

  • Same shape as a hammer, but it appears after an advance.
  • Small body near the top of the range, lower shadow at least twice the body, little or no upper shadow.

What it suggests

Inside an uptrend, a session that dropped sharply below its open shows that sellers took control for a while, even though buyers recovered by the close. It is an early warning that the advance is meeting supply, not a reversal by itself.

Where it matters

Carries more weight near resistance and after a long run of rising candles.

Educational content only. Candlestick patterns describe past price action. They do not predict future prices, and they are not trading signals or investment advice. Prices in the diagrams are illustrative.

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