Hanging Man
Volume Price Analysis glossary · Volume Price Analysis
Definition
A hammer-shaped candle at the top of an uptrend; signals potential weakness (selling pressure appeared).
Hanging Man in plain English
A Hanging Man is the exact same shape as a Hammer, small body up top with a long wick dangling below, but its location flips its meaning completely. When this shape shows up after prices have been climbing for a while, that long lower wick is a warning: it reveals that sellers were able to knock the price down hard mid-session, even if buyers rescued it by the close. It is like a runner who has been sprinting uphill suddenly stumbling; they caught themselves this time, but the wobble hints they are tiring. In short, same candle as the Hammer, but at the top of a rally it signals possible weakness ahead instead of strength.
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A stock has been in a sustained uptrend for three weeks. A… How should this be interpreted?
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