When prices opens higher and closes lower than the previous day's price the hanging man is bullish, while When prices opens lower and closes higher than the previous day's price the hanging man is bearish,
I am not much of a technical trader, but are you sure you stated the right definition. As according to my knowledge if a candle opens higher and closes lower then it's a bearish Hanging Man (HM) candle, not a bullish HM candle. What you think please CMIIW as I am also learning.
Looking at bearish hanging man you can time your sales with them before entering any other trade, examine movement price to previous resistance levels to spot a hanging man pattern.
If you had added a picture or some more details then it would have more easier for people like me to understand what is hanging man candlestick is and how we should interpret it. Anyway, you made a good effort, thanks for sharing it, bring more topics like these but with more detailed info, if you don't mind me. Besides this, there is no doubt that we should not depend on a single indicator for trading purposes, because that's not how trading works, and most of these indicators are not applicable (mostly) in crypto, as crypto is highly volatile and there is uncertainty in it. We can only make profit from it by using other information as well.