Beginner · Candlestick & chart patterns
Hanging Man
What it means
After an advance, sellers pushed price well below the open before buyers recovered most of it, which shows selling pressure appearing and may precede a potential downturn.
At a glance
- Directional bias
- Bearish warning
- Sessions to form
- 1 trading session
- Curriculum tier
- Beginner
- Pattern family
- hammer
Practise this pattern in the Simulator
Reading a definition is not the same as spotting one. Run Hanging Man on real historical NSE daily bars in the Pattern Arena — the chart pauses and explains the formation each time it completes. Virtual capital only.
Practise Hanging Man in the SimulatorRelated patterns
Hammer
bullishSellers forced price sharply lower and buyers bought all of it back before the close, rejecting the lower prices and hinting at a potential floor.
Takuri Line
bullishSellers drove price far below the open and buyers reclaimed nearly all of an unusually wide range by the close, a deep rejection of lower prices at a potential floor.
Doji
indecisionPrice travelled through the session and closed right back where it opened, so neither buyers nor sellers won and the current trend has lost its conviction.
Bullish Engulfing
bullishBuyers have overwhelmed sellers, erasing the whole of the previous down session in one move and indicating a potential reversal upward.
Bearish Engulfing
bearishSellers have overwhelmed buyers, erasing the whole of the previous up session in one move and indicating a potential reversal downward.
Morning Star
bullishA strong down session is followed by a small-bodied pause and then a strong up session, showing selling pressure fading and buyers taking over at a potential bottom.
Educational reference only. This describes what traders conventionally read into the Hanging Man formation. It is not a trading signal, a prediction or investment advice, and no pattern is reliable on its own. Finance Onyx is a simulated educational platform: all practice uses virtual capital and no order is ever routed to a broker or an exchange.