What does a hanging man look like in stocks

A hanging man candlestick pattern in stocks is a bearish reversal pattern that resembles a hanging man, hence the name. It is characterized by a small real body and a long lower shadow, often with little to no upper shadow. Here's a detailed description of what a hanging man looks like: 1. **Small Real Body**: The hanging man pattern starts with a small real body, which represents the trading range of the day. This body is typically small because the opening and closing prices are close together. 2. **Long Lower Shadow**: The long lower shadow indicates a significant drop in price during the day. This shadow is often at least twice the length of the real body, and it shows that the stock price fell sharply after opening. 3. **Little to No Upper Shadow**: Unlike the upper shadow of a shooting star pattern, the hanging man pattern usually has little to no upper shadow. This means that the stock price did not pull back significantly before closing. 4. **Formation**: The hanging man pattern forms when the stock price opens higher than the previous day's close but then drops significantly during the day, closing near or below the opening price. This creates a candle that looks like a man hanging by a noose, hence the name. In summary, the hanging man pattern in stocks is a bearish pattern that features a small real body, a long lower shadow, and little to no upper shadow. It indicates a potential trend reversal from bullish to bearish, suggesting that the market may be losing upward momentum and preparing for a potential downturn.