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Hanging man or hangman is a candlestick market reversal pattern which indicates a market reversal. Hangman candlestick occurs at the end of an uptrend and is named because it resembles a man hanging on a rope.

Hanging man candlestick is a small candlestick either white (colorless) or dark (colored). It has no, or very small, upper shadow (indicating highest price of the day) and long lower shadow (indicating lowest price of the day) which often more than double the length of candlestick body. Hangman candlestick pattern is created when there is high selling pressure at opening hours of the day, but bulls have managed to bring back the price near the opening price at the end of the trading day.

Hanging man candlestick formations favor day traders more as they are more easily identified in intraday trading charts. Hangman is considered as a modestly reliable candlestick formation; and the reliability increase with the increase of the length of the lower shadow, with the decrease in length of candlestick body and with the formation of a colored candlestick. Most traders initiate trade after the confirmation of trend reversal, which can be a gap or decrease in price in succeeding day.

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