What is Hanging Man Candlestick?

The hanging man candlestick pattern is a technical analysis tool used by traders to identify potential trend reversals. It is formed when the price of an assets opens higher than the previous close, but then falls significantly during the trading session, closing near or below the opening price. The resulting candlestick has a small body, a long lower shadow, and little or no upper shadow, resembling a hanging man.

Traders interpret the hanging man pattern as a sign that the bullish momentum of the asset is weakening, and that there is a higher chance of a bearish trend reversal.

Note : It is important to remember that the hanging man pattern is not always accurate, and traders should use it in confluence with other technical and fundamental analysis