A hanging indent can be recognized by its shape; the first line of the paragraph will be left justified, meaning that it will begin all the way at the left margin of the paper. The second and all subsequent lines will be indented.
Hanging indents are used primarily in bibliographies, where the first line of text in a bibliography is justified left, and all other lines of information are indented beneath it. Some types of numbered or bulleted lists will also use a hanging indent after they are introduced.
Using a hanging indent visually sets the list or bibliography apart from the rest of the piece of writing, making it easier to identify and read.
When writing a paper, a hanging indent can be made by going to the paragraph formatting dialog box and selection the option that creates a hanging indent within that box. Alternately, a hanging indent can be made simply by using the tab key to give the second and subsequent lines indentation.
Hanging indents should not be used for traditional introduction, conclusion or body paragraphs of any type of paper. The use of a hanging indent is meant only to denote a bibliography or a specifically created list.