Hanging Man

See our Patterns Dictionary for other patterns.

Check our CandleScanner software and start trading candlestick patterns!

Figure 1. Hanging Man pattern.

Figure 1. Hanging Man pattern.

Japanese name: kubitsuri
Forecast: bearish reversal
Trend prior to the pattern: uptrend
Opposite pattern: Hammer

Construction:

  • white or black candle with a small body
  • no upper shadow or the shadow cannot be longer than the body
  • lower shadow at least two times longer than the body
  • if the gap is created at the opening or at the closing, it makes the signal stronger
  • appears as a long line
  • the body fully located above the trendline

 


This article is devoted to the Hanging Man one-line pattern.

Hanging Man is a pattern that is very popular among analysts similarly as the opposite Hammer pattern. Perhaps this is a consequence of the impressive name referring to the shape of the candle resembling a hanged man.

Pattern appears in an uptrend as a long line, and is characterized by a long lower shadow -- at least two times greater than the body. Almost all sources allow minimal upper shadow, so we assumed in CandleScanner that its length cannot be larger than the body.

Hanging Man belongs to the bearish reversal patterns group. However, if a strong support zone was developed prior pattern occurrence, it is often just a temporary slowdown of price increases. It works best in a longer uptrend, and its occurrence after several days of increases usually does not matter.

Correct interpretation of the Hanging Man pattern requires thorough analysis of the market on the chart. The meaning of the pattern will be stronger if it occurs in a significant resistance zone. As every one-line pattern, it must be confirmed in two or three consecutive candles, which closing prices should be lower than the closing price of the pattern. However, as with other peak patterns, many active market players open positions without waiting for any confirmations.

Hanging Man pattern may be formed in the second line of other patterns such as Bearish Harami for example.

 

Figure 2.

Figure 2. The figure presents two occurrences of the Hanging Man pattern.
The first occurrence was a false signal, a good example that such patterns should be confirmed on the following candles. Long White Candle, formed at a high trading volume was enough to cancel the Hangin Man.
The second Hangin Man pattern is confirmed by the Long Black Candle.
It is worth to pay attention to the length of both long candles. Long White Candle body seems to be much shorter than the Long Black Candle. However, this is a result of the fact, that prior the Long White Candle, the market price volatility was lower than the one preceding Long Black Candle.

 

Figure 3.

Figure 3. Hanging Man commonly occurs as a part of Bearish Harami pattern. The first line of the Bearish Harami pattern being a Long White Candle seems to be a bullish signal. It creates a significant support zone, strengthened by a high trading volume.
After the appearance of Hanging Man, the overall trading volume increases on both sides, i.e. the bulls and the bears.

 

Hanging Man statistics

Below you can find some Hanging Man pattern statistics calculated by CandleScanner software. To see more detailed statistics, for other markets and periodicity try our CandleScanner software. Prices start at only $10, and you can see more detailed statistics, for other markets and periodicity. Click here to find out more!

Pattern name: Hanging Man
Scanner settings: daily stocks
Group: S&P500
Number of symbols: 502
Date range: 7/1/1995 - 6/30/2015
Time interval: daily candles
Total number of candlesticks: 2,236,421
Number of occurrences (Hanging Man): 20,388
Number of occurrences (all candlestick patterns): 638,570
% of occurrences (Hanging Man): 3.19 %
Average frequency: 109.7
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
4 2,890 7,028 4,218 6,248
% of
Occurrences
0.02 % 14.16 % 34.47 % 20.69 % 30.66 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
21 2,661 5,655 3,857 8,194
% of
Occurrences
0.10 % 12.95 % 27.74 % 18.92 % 40.29 %

 

10 top best performing symbols

Occurrences Statistics 5 candlesticks testing period
(HIGH efficiency)
10 candlesticks testing period
(HIGH efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
XLNX 46 109.4 27 58.69 % 31 67.39 %
VRTX 46 109.4 29 63.04 % 31 67.38 %
AA 56 89.9 29 51.79 % 36 64.29 %
DHI 45 111.9 25 55.56 % 27 62.22 %
THC 51 98.7 26 50.98 % 30 58.82 %
REGN 45 111.8 26 57.77 % 26 57.77 %
ARG 44 114.4 19 43.19 % 25 56.82 %
ESRX 57 88.3 25 43.86 % 32 56.14 %
ADSK 50 100.7 25 50.00 % 28 56.00 %
ALTR 45 111.9 23 51.11 % 25 55.56 %

 

10 top worst performing symbols

Occurrences Statistics 5 candlesticks testing period
(FALSE efficiency)
10 candlesticks testing period
(FALSE efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
CELG 44 114.4 15 34.09 % 14 31.82 %
URBN 44 114.3 14 31.82 % 14 31.82 %
WDC 44 114.4 14 31.82 % 14 31.82 %
MRO 48 104.9 15 31.25 % 15 31.25 %
BWA 44 114.4 13 29.55 % 13 29.55 %
NVDA 48 86.2 14 29.17 % 14 29.17 %
URI 45 98.0 13 28.89 % 13 28.89 %
LVLT 43 100.9 12 27.91 % 12 27.91 %
BIIB 44 114.4 12 27.27 % 12 27.27 %
LM 46 109.4 12 26.09 % 12 26.09 %
Pattern name: Hanging Man
Scanner settings: daily stocks
Group: S&P500
Number of symbols: 502
Date range: 7/1/2010 - 6/30/2015
Time interval: daily candles
Total number of candlesticks: 614,034
Number of occurrences (Hanging Man): 5,907
Number of occurrences (all candlestick patterns): 166,328
% of occurrences (Hanging Man): 3.55 %
Average frequency: 104.0
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
4 795 2,537 1,273 1,298
% of
Occurrences
0.07 % 13.39 % 42.95 % 21.55 % 22.04 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
21 682 2,046 1,237 1,921
% of
Occurrences
0.36 % 11.19 % 34.64 % 20.94 % 32.87 %

 

10 top best performing symbols

Occurrences Statistics 5 candlesticks testing period
(HIGH efficiency)
10 candlesticks testing period
(HIGH efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
VRTX 15 83.7 11 73.33 % 13 86.66 %
JOY 15 83.9 10 66.66 % 11 73.33 %
RF 13 96.8 8 61.54 % 9 69.23 %
VLO 12 104.8 6 50.00 % 8 66.67 %
GILD 16 78.6 7 43.75 % 10 62.50 %
DFS 13 96.8 4 30.77 % 8 61.54 %
XLNX 15 83.9 6 40.00 % 9 60.00 %
LEN 12 104.8 3 33.33 % 6 58.33 %
CELG 14 89.9 6 42.85 % 8 57.15 %
AVY 14 89.9 6 42.86 % 7 57.14 %

 

10 top worst performing symbols

Occurrences Statistics 5 candlesticks testing period
(FALSE efficiency)
10 candlesticks testing period
(FALSE efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
BLL 12 104.8 5 41.67 % 5 41.67 %
PCLN 13 96.8 5 38.46 % 5 38.46 %
MOS 14 89.9 5 35.71 % 5 35.71 %
EL 15 83.9 6 40.00 % 5 33.33 %
WM 15 83.9 5 33.33 % 5 33.33 %
EQIX 19 66.2 6 31.58 % 6 31.58 %
DE 13 96.8 4 30.77 % 4 30.77 %
HRB 13 96.8 4 30.77 % 4 30.77 %
KSU 13 96.8 4 30.77 % 4 30.77 %
CCI 17 74.0 5 29.41 % 5 29.41 %

Comments are closed.