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Definition

A top reversal candlestick formation which signals the end of an upward trend, consisting of a candle with a small body and long lower shadow. This formation implies that the bulls are losing control, as the price is driven down significantly during the period. The longer the lower shadow is the more strength the formation has. This shadow should be at least double the length of the candle's body. The upper shadow should be small or non-existent, and the colour of the candle does not matter. This formation is more commonly found in intraday charts and is a sign that the trend is about to change. The hanging man looks just like the hammer formation except that it is found at the top of trend as opposed to the bottom. It's opposite is the inverted hammer which is also a bottom reversal signal, but unlike the hammer, it has a long upper shadow.
<figure class="container-fluid"><img class="img-responsive" style="display: block; margin: 0 auto; max-width: 100%;" src="/onlinecourse/img/glossary/Hanging-Man.jpg" alt="hanging-man" />
<figcaption style="text-align: center;">Hanging Man Candlestick Formation</figcaption>
</figure>

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