During her thesis, Helen Lyle (Virginia Madsen) writes a report on serial killers. One such urban legend is the Candyman - a man born in the 19th Century who is brutally murdered by bees and is back from the dead to haunt anyone that says his name five times in a mirror.
Disbelieving of all the warnings, Helen utters the words and Candyman returns complete with his hooked arm.
The psychological element is generated because the audience is fully aware from the start that the main characters are in charge of their own downfall; they don't have to say "Candyman" - but they do. The film plays on this and rather than showing the Candyman immediately it creates a brief pause where an expectant audience awaits the inevitable shock. As for the blood element, once the Candyman appears he tends to be followed immediately by a lot of it.
Despite this, it does have one flaw - The Candyman himself. Once he is revealed much of the psychological edge is taken away from the film and the scenes are far less jumpy. That said, a whole new fear is introduced by knowing that he does exist in more than just myth.
All-in-all a decent horror.