Hanging Man — what it is and how to use it in trading
Definition
A Hanging Man is a candle identical in shape to a Hammer (a small body near the top, a lower wick at least twice the body length) but it appears after an UPTREND rather than a decline — sellers already pushed price down intrabar even though buyers closed it back near the top.
How it works in the builder
hanging_man is a boolean operand with no parameters: it checks the exact same shape ratio as hammer (small body, long lower wick), but it is a separate operand — the builder does not infer the preceding trend on its own.
What it looks like on the chart
Visually indistinguishable from a Hammer — the only difference is the preceding price move, which the candle itself doesn't encode.
Typical use
Typical condition: hanging_man == 1 after a run of rising candles, ideally confirmed by a bearish candle on the next bar or an overbought rsi(14) > 70.
Common pitfalls
Because the shape check is identical to Hammer, hanging_man and hammer are two separate boolean flags firing on the same candle shape in opposite trend contexts — without an explicit uptrend filter (e.g. price above an EMA), it's indistinguishable from a random Hammer-shaped candle in a range.
This block is available in the strategy builder
137 no-code blocks — build an entry condition with this term and test it on history
Historical results do not guarantee future ones. The service is an informational and analytical tool, not an individual investment recommendation; trades are not executed.