What's the Hanging Man candlestick pattern?
7/22/2025 12:45am
The Hanging Man candlestick pattern is a bearish reversal pattern that appears at the end of an uptrend, signaling a potential shift in market sentiment and a possible trend reversal to the downside. Here's a detailed analysis of this pattern:
1. **Structure and Appearance**: The Hanging Man pattern consists of a small real body near the top of the candlestick, a long lower shadow, and little to no upper shadow. This formation resembles a figure hanging from its head, hence the name "Hanging Man".
2. **Market Sentiment Shift**: The psychology behind the Hanging Man pattern reflects a shift in market sentiment. After a sustained uptrend, the appearance of this pattern indicates that buyers are losing momentum, and selling pressure is emerging.
3. **Trend Reversal Signal**: The Hanging Man