Back to Hammer Pattern
Hanging Man
BearishVisual Example
Quick Summary
Shape
Same shape as hammer but appears after an uptrend.
Common Trap
Ignoring that context (uptrend vs downtrend) determines meaning.
Context Rule
Warning sign at resistance after uptrend; not a signal alone, needs confirmation.
When It Fails
- •In strong uptrend with no resistance nearby
- •Not at logical profit-taking level
- •Low volume (no real distribution)
- •Bullish candle follows instead of confirmation
When It Works
- •At established resistance after extended rally
- •Volume spike indicates profit-taking/distribution
- •Next candle closes below hanging man low
- •Appears at round numbers or prior swing highs
Key Concepts
Understanding these methodology concepts will help you evaluate Hanging Man setups more effectively:
Training Note: Pattern variants are educational classifications. Real-world price action rarely matches textbook definitions exactly. Always evaluate patterns in context of regime, location, and volume. This is not trading advice.