Hanging Man
A small-body candle with a long lower wick after a rally — a bearish warning that sellers are starting to test the uptrend.
A hanging man has the same shape as a hammer — small body, long lower shadow — but it appears after an advance instead of a decline. The long lower wick shows sellers managed to drive price down sharply intraday before buyers recovered it.
It warns the uptrend may be tiring, but like all single candles it needs confirmation: a lower close the next session strengthens the bearish read.
On StockSetups
On a long-only board the hanging man acts as a caution flag on an extended name in StockSetups' candlestick set, not a tradable short.
Related terms
See hanging man on tonight's board.
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