The hanging man candlestick pattern (view full size chart) is one of the single candlestick patterns (i.e. it consists of only one candlestick), and in its usual context (an upwards trend), it is usually a bearish pattern.
The hanging man candlestick opens with a gap up, and at (or near) its high, closes the gap during trading, and closes at a similar (but not exactly the same) price, with the body of the candlestick above the gap. Note that the hanging man candlestick is the same as the hammer candlestick, but in a different context.
Use In Trading
The hanging man pattern can occur in a number of different contexts (e.g. at the beginning of a trend, during a trend, at the end of a trend, etc.). However, the hanging man pattern is only relevant in an upwards trend, and often requires confirmation from the adjacent candlesticks, before the hanging man pattern can be used as a trade entry and/or exit pattern. The hanging man pattern is also included in some of the two or three candlestick patterns, in which case it has more relevance, and can provide an indication of upcoming price movement.
