Hanging Man

The hanging man is the bearish equivalent of a hammer. It typically forms at the end of an uptrend with a small body and a long lower wick.

The lower wick indicates that there was a significant sell-off after the uptrend, but the bulls managed to regain control and drive the price back up (temporarily).

It’s a point where buyers try to keep the uptrend going while more sellers step in, creating a point of uncertainty.

The hanging man after a long uptrend can act as a warning that the bulls may soon lose momentum in the market, suggesting a potential reversal to the downside.