How Do I Trade Hammer Candles Pattern?
Hammer gold candlestick pattern is a potentially bullish gold candle pattern that forms during a gold downward trend. It is named so because the xauusd market is hammering out a market bottoms.
A hammer candlestick pattern has:
- A small body
- The body is at the top
- The lower shadow is 2 or 3 times length of real body.
- Has no upper shadow or very small upper shadow if present.
- The color of the body is not important
How to Trade Hammer Candlestick Gold Pattern Bearish or Bullish
Technical Analysis of Hammer Candles Pattern
The bullish reversal buy trading signal is confirmed when a candle closes above the opening xauusd price of the candle on the left side of the hammer candle pattern.
Stoploss orders should be set a few pips just below the low of the hammer candlestick once a trade is opened using this xauusd candlesticks pattern formation.
