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.
How it has actually played out
- Hanging Man: across 4,466 signals on US stocks in the last 150 days, price was lower a week later 54.3% of the time (+0.1 pts vs. an ordinary session) and lower a month later 60.9% (+2.3 pts).
Measured from the signal-day close, no stops or costs, versus every session of the same stocks over the same window. A base rate, not a prediction.
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.
Scan for candlestick patterns nightly →Related terms
Get daily signals & real-time alerts.
StockSetups scans ~12,300 US stocks & ETFs after every close and sorts every long setup into four ranked lanes — each with a trade plan — plus an always-on engine firing 35+ real-time intraday alerts. Free for 7 days, no credit card.
Start free — 7-day trial, no card →Free daily signals by email. Top 3 setups per lane after every close. No account needed.
Unsubscribe anytime · Privacy