Hammer vs Hanging Man
A detailed side-by-side comparison of the Hammer and Hanging Man chart patterns.
A bullish reversal candle with a small body at the top and a long lower shadow, found at the bottom of downtrends.
Best for
Identifying bullish reversals at support levels
A bearish warning candle with the same shape as a Hammer but found at the top of uptrends.
Best for
Warning of potential bearish reversals at resistance
Key Differences
- Identical shape but opposite context — downtrend vs uptrend
- Hammer is bullish; Hanging Man is bearish
- Hammer has higher reliability than Hanging Man
- Hanging Man requires more confirmation than Hammer
- Hammer shows buying rejection of lower prices; Hanging Man shows selling pressure despite rally
When to Use Hammer
Use Hammer when price is in a downtrend and you see a long lower shadow at a support level. The long wick shows buyers stepped in aggressively at lower prices, rejecting the sell-off.
When to Use Hanging Man
Use Hanging Man when price is in an uptrend and this candle appears at resistance. It warns that sellers are becoming active, though it requires bearish confirmation the next day.
Frequently Asked Questions
How do I tell a Hammer from a Hanging Man?▾
They look identical — the difference is context. A Hammer appears after a downtrend (bullish signal), while a Hanging Man appears after an uptrend (bearish warning).
Which is more reliable?▾
The Hammer is more reliable because the long lower shadow in a downtrend shows genuine buying demand. The Hanging Man is a warning signal that requires confirmation.