BROWSE

Hanging Man

Definition

The Hanged Man is the twelfth trump or Major Arcana card in most traditional Tarot decks. It is used in game playing as well as in divination.

What is a 'Hanging Man'

A hanging man is a bearish candlestick pattern that forms at the end of an uptrend. It is created when there is a significant sell-off near the market open, but buyers are able to push this stock back up so that it closes at or near the opening price. Generally, the large sell-off is seen as an early indication that the bulls (buyers) are losing control and demand for the asset is waning.

Explaining 'Hanging Man'

The hanging man formation does not mean that the bulls have definitively lost control, but it may be an early sign that the momentum is decreasing and the direction of the asset may be getting ready to change. Hanging man formations can be more easily identified in intraday charts than daily charts and are a very popular formation used by day traders. If this pattern is found at the end of a downtrend, it is known as a "hammer".

Anatomy of a Hanging Man Candlestick

The candle should have a small body near or at the top of the candle and a large tail or lower shadow that should be at least twice the size of the body. The candle color can be green or red. A red candle close is considered more bearish. The more important detail is the context of the preceding candles leading up to the hanging man and the candles afterward.

Bearish Hanging Man

Typically considered a bearish candlestick, an ideal scenario would be preceding series of at least three or more bullish green candles with higher highs. In the aforementioned structure with a small body and long tail, the hanging man candle should form at the top. The next candle needs to close under the body low, preferably at or below the tail.


Further Reading


Theories of Social Preferences Beyond Homo Economicus: A Review Based on the Experimental Economics [J]
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… ASEAN members and extended to the five other ASEAN members at the Brunei Darussalam ASEAN Finance Ministers' Meeting … HANGING TOGETHER … only US $8 billion in 1998 and showed little tendency to recover subsequently (reflecting un- certain economic prospects and …

Environmental Risks and Green Finance <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-TSXY200606003.htm' />Environmental Risks and Green Finance [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-TSXY200606003.htm'>PDF]
… ASEAN members and extended to the five other ASEAN members at the Brunei Darussalam ASEAN Finance Ministers' Meeting … HANGING TOGETHER … only US $8 billion in 1998 and showed little tendency to recover subsequently (reflecting un- certain economic prospects and …

Analysis on Hanging on to Pooling of Interest MethodAnalysis on Hanging on to Pooling of Interest Method
en.cnki.com.cn [PDF]
… ASEAN members and extended to the five other ASEAN members at the Brunei Darussalam ASEAN Finance Ministers' Meeting … HANGING TOGETHER … only US $8 billion in 1998 and showed little tendency to recover subsequently (reflecting un- certain economic prospects and …

The Hanging Man: Death, indeterminacy and the eventThe Hanging Man: Death, indeterminacy and the event
www.tandfonline.com [PDF]
… ASEAN members and extended to the five other ASEAN members at the Brunei Darussalam ASEAN Finance Ministers' Meeting … HANGING TOGETHER … only US $8 billion in 1998 and showed little tendency to recover subsequently (reflecting un- certain economic prospects and …

Efficiency and Justice: A dialogue between economics and law <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-XSYK200603003.htm' />Efficiency and Justice: A dialogue between economics and law [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-XSYK200603003.htm'>PDF]
… ASEAN members and extended to the five other ASEAN members at the Brunei Darussalam ASEAN Finance Ministers' Meeting … HANGING TOGETHER … only US $8 billion in 1998 and showed little tendency to recover subsequently (reflecting un- certain economic prospects and …

Analysis of Liu Gongyun's Financial Practice during the Period of Republic of ChinaAnalysis of Liu Gongyun's Financial Practice during the Period of Republic of China
en.cnki.com.cn [PDF]
… ASEAN members and extended to the five other ASEAN members at the Brunei Darussalam ASEAN Finance Ministers' Meeting … HANGING TOGETHER … only US $8 billion in 1998 and showed little tendency to recover subsequently (reflecting un- certain economic prospects and …



Q&A About Hanging Man


What is a hanging man?

A hanging man is a bearish candlestick pattern that forms at the end of an uptrend.

What is hanging?

Hanging is the suspension of a person by a noose or ligature around the neck.

What does it mean when there are three or more bullish green candles with higher highs?

It means that the bulls (buyers) are in control and demand for the asset is increasing.

How many methods are there for executing someone through hanging?

There are numerous methods of hanging in execution which instigate death either by the fracturing of the spine or strangulation.

How would you describe the body of a hanging man candle?

The body should be small near or at the top of the candle and large tail should be at least twice as big as its body.

Why would you consider this to be bullish instead of bearish ?

Because price bounced off support rather than breaking through it .

When do you consider a hanging man to be ideal?

When it forms after three or more bullish green candles with higher highs.

Can you give an example of how this pattern could form during an uptrend ?

Yes, if price opens above resistance but then falls back into support , forming a long lower shadow .

What happens next after an ideal hanging man formation?

The next candle needs to close under the body low, preferably at or below its tail.

Which color candle has more significance, red or green?

Red candles close have more significance than green ones.

Is there any other meaning associated with this candlestick pattern besides being considered bearish ?

Yes, it can also indicate indecision between buyers and sellers .

What can you do with short drop hangings?

Short drop hangings can be used for executions, as well as suicides.

What does iapply to death by suspension" mean?

The Oxford English Dictionary states that hanging in this sense is "specifically to put to death by suspension by the neck", though it formerly also referred to crucifixion and death by impalement.

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