The Hanging Man is a bearish single-candlestick reversal pattern that forms after an uptrend: it has a small real body near the top of the range and a long lower shadow at least twice the size of the body, with little or no upper shadow. It looks like a Hammer, but at a top it shows that sellers were able to push the price sharply lower during the session, and traders wait for a lower close on the next bar to confirm the reversal.
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Candlestick Basics
Are you candlestick-literate? The widely used candlestick chart is easy to read but also contains some less obvious but valuable
clues about momentum and reversal.
Candlesticks, Japanese - Technical Analysis from A to Z
In the 1600s, the Japanese developed a method of technical analysis to analyze the price of rice contracts. This technique is called candlestick charting. Steven Nison is credited with popularizing candlestick charting and has become recognized as the leading expert on their interpretation. I have met investors attracted to candlestick charts by their mystique - maybe they are the "long-forgotten Asian secret" to investment analysis.
Candlestick Basics
Candlesticks, Japanese - Technical Analysis from A to Z