Can the hanging man pattern fail?

The hanging man pattern can fail and frequently does, especially without confirmation or in strong uptrends. Without bearish follow-through, roughly 40% of hanging man candles resolve to the upside, which is why traders should always wait for the next candle to confirm. In a study by Thomas Bulkowski, price increases 59% of the time after forming a Hanging Man, indicating the pattern fails without confirmation. The hanging man can result in a fake-out and even provide continuation; when used in continuation, short sellers get sucked in, creating a short squeeze that pinches the price rather than dumping it