Graphically, it is a candlestick with a small short body and a long lower shadow. There should be no upper shadow at all, or it should be very short.
Graphically, it is a candlestick with a small short body and a long lower shadow. There should be no upper shadow at all, or it should be very short. The color of the candlestick does not play a special role, but on small timeframes, the model with a black candlestick will be stronger.
Although the Hammer and the Hanged Man are usually presented as the same patterns, only for different trends (downtrend and upward), the difference is obvious. If at the Hammer, before the prices returned to the zone of the opening point, the chart tended in the direction of the current trend, then at the Hanged Man, on the contrary, prices tried to go in the opposite direction, against the existing trend.
For the formation of this pattern, an uptrend or at least a small channel is required before the main candlestick. If it is absent, or if it is too weakly expressed, the pattern cannot be considered correct and should not be used at all as a signal to open trades.