Hanging Man
A Hammer-shaped candle appearing at the top of an uptrend — the long lower wick hints that selling pressure is creeping in — a bearish warning.
The Hanging Man has the same anatomy as the Hammer — small body near the top, long lower wick — but it appears after a sustained uptrend, not a downtrend. Location changes everything.
The long lower wick shows that during the session, sellers pushed price sharply lower, even though buyers recovered it by the close. At the top of a trend that recovery may be the last one. Confirmation (a bearish close below the Hanging Man's body the next session) is essential before acting on this warning.
On the desk
After a two-month rally, a Hanging Man prints on lighter-than-usual volume. The next day opens flat and then sells off hard, closing below the Hanging Man's body — confirmation that buyers are exhausted.