Hammer and Hanging Man

If spinning tops made up of a short candlestick with medium or long upper and lower shadow, then hammer (in the Japanese language this formation is called takuri, which means test the depth of the water with a sense of bottom) and hanging man (in Japanese is called kubitsuri) formed by a short body candlestick with a medium or long lower shadow of very short or long upper shadow.

If we refer to the above explanation actually candlestick on hammer and hanging man pattern has the same shape, we can only distinguish hammer and hanging man by seeing the trend that preceded it.

If its emergence is preceded by the uptrend then we will get a hanging man pattern, while if its emergence is preceded by downtrend then we'll get the hammer pattern.
Before the emergence of hammer patterns the condition in the market looks pessimistic (bearish). on the day the formed hammer pattern to a half of the trading session the market is actually still looks pessimistic. Still its pessimistic of market to until a half of trading session on the day of forming of hammer that showed from price movement continues to move away below the open price level. The price decline until a half this session actually shows that the downward trend is still in control.
But entering the next half session or before closing the pressure of buying into action and take over the game. So buying action then change coloring the trading and bring the price to move up and succeeded to force the price to close at a level nearly to open price.

Although buying is not able to force price to move too far above the open price, but buying pressure towards the end of the session creating market hesitancy of viability bearish trend that happened before, it gives a bullish potential on the next day.
On the day the forming of hanging man formation up to a half of the trading session apparently selling pressure would have ended the bullish trend that occurred before because till to a half of the trading session the price continue to be forced to move down away from the open position.

The market will then assess that the upward price movement in a half last trading session is not strong enough and did not have enough power to continue uptrend, while the position of the lower shadow which is quite far from the position of the open show the creation of the potential power to push the price in the next period, it is which in turn led the market to believe that the bearish trend has the potential to occur in the next period.