What is the "Hanging Man" pattern and what is its significance in trading?

In technical analysis, Hanging Man is a candlestick pattern that indicates a bearish reversal trend with selling pressure emerging at higher levels. The pattern involves a small real body and a long lower shadow with an upper shadow staying low. This suggests that the sellers are entering the markets and the bulls are getting tired as the prices start showcasing weak close.

This candlestick pattern provides the first sign of weakness and if the price fails to conquer the high of the “Hanging Man”, then the weakness may turn into a major bearish trend and the counter may gain momentum