The Hanging Man candlestick pattern is a bearish reversal pattern. The top of the price chart is characterized by the formation of the Hanging Man pattern. The lower edge of the candle is characterized by a long wick, while the upper edge has little or no wick.

The Hanging Man pattern forms when the market is in an uptrend and a single candlestick with a long lower wick appears. The candle opens and the price begins to decline. During the closing session, the buyers attempt to push the price higher, establishing a candlestick close near the opening price, resulting in a long wick that appears as the Hanging Man.

According to a study conducted by the Center for Financial Markets Research at Vanderbilt University, published in a report titled “Candlestick Patterns and Their Statistical Significance in Financial Markets,” the Hanging Man pattern has a success rate of about 59% in predicting bearish reversals.