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Hanging Man

A hammer-shaped candle that appears after a rise, warning that sellers have started to show up.
In plain English

A hammer-shaped candle that appears after a rise, warning that sellers have started to show up.

The hanging man looks exactly like a hammer: small body at the top, long lower wick. The difference is location. After an uptrend, the long wick shows sellers managed a sharp drop during the session, even if buyers pulled it back.

It is a warning, not a verdict. Traders often want a bearish candle next before acting.

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