On a Japanese Candlestick chart, the Hanging Man candlestick occurs when a security moves significantly lower after the open, but rebounds to close well above the intraday low. The Hammer and Hanging Man are short body candles with little or no upper shadow or wick, and a lower shadow at lease twice the height of the candle body. They are reversal candlesticks: hammers form during a decline at trend bottoms, the bearish Hanging Man forms during an advance.
