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Hanging Man

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A hanging man is a bearish reversal pattern that is formed after the bullish trend and can be seen in candlestick patterns. The formation of a candle is identical to the hammer – it has a long lower shadow (wick), small upper body, and little or no upper shadow (wick). It shows the weakness in a bullish trend and symbolizes a potential selling trend in the market.

However, the major difference between a hammer and a hanging man is that the hammer is followed by a bearish trend while a hanging man is followed by a bullish trend.