Skillsfirst Level 3 Certificate in Introduction to Financial Trading (RQF) - UNIT 2: Principles of Financial Planning and Cash Flow in Financial Trading
Hanging Man is a potentially bearish pattern which occurs during an uptrend. It is named because it looks like a hanging man with dangling legs. The recognition criteria for it are:
A long lower shadow which is about two to three times of the real body.
Little or no upper shadow.
The real body is at the upper end of the trading range.
The color of the body is not important, though a black body is more bearish than a white body.