What is Hanging Man Candlestick?

The hanging man candlestick pattern is a technical analysis tool used by traders to identify #potential trend reversals. It is formed when the price of an #asset opens higher than the previous close, but then falls significantly during the trading session, closing near or below the opening price. The resulting #candlestick has a small body, a long lower shadow, and little or no upper shadow, resembling a hanging man.

Traders interpret the #hanging man pattern as a sign that the bullish momentum of the asset is weakening, and that there is a higher chance of a bearish trend reversal.

Note : It is important to remember that the hanging man #pattern is not always accurate, and traders should use it in #confluence with other technical and #fundamental analysis