The hanging man is a sort of bearish reversal candlestick pattern. The hanging man's candle's bottom wick (shadow) is longer than the body, which is often much shorter and flat at the top with little or no upper wick (shadow). The lengthy lower wick reflects the huge intra-day trading range and volatility, while the smaller body suggests that the open and closing prices were close to each other. The lower wick, according to most traders, must be at least twice the size of the body, and the body must occur at the top of the daily trading range.

The Hanging Man pattern is a significant candlestick pattern widely recognized in technical analysis, primarily within the context of financial markets, including stocks, forex, and cryptocurrencies. This pattern is typically interpreted as a bearish reversal signal.

The Hanging Man pattern forms when a candlestick has a small body, a long lower shadow, and little to no upper shadow. Visually, it resembles a inverted "T" or, as the name suggests, a hanging man with his feet dangling beneath. The small body indicates that the opening and closing prices are close, while the long lower shadow suggests that prices fell significantly during the session but rebounded to close near the session's high.

Traders interpret the Hanging Man pattern as a sign of potential weakness in an uptrend. It suggests that even though buyers pushed prices higher during the session, selling pressure increased, causing the security to retreat from its intraday highs. The pattern is more significant when it occurs after a notable uptrend.

However, it's crucial to consider the Hanging Man pattern in conjunction with other technical indicators and market conditions for a comprehensive analysis. Traders often use additional confirmation signals to strengthen the reliability of their predictions and to avoid relying solely on one candlestick pattern for decision-making.