Shaped like a hammer but printed at the top of an uptrend. The long lower wick reveals that sellers were able to drive price down intrabar, an early sign of weakness.
How to identify it
- Appears after a sustained rally
- Long lower wick, small body near the high
- Needs a bearish follow-through candle to confirm
Entry
Sell when the following candle closes below the hanging man body.
Stop loss
Above the hanging man high.
Target
Prior consolidation or swing low below.
Invalidation
A new high above the pattern after confirmation.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your hanging man trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.