Reversal Candlestick Patterns and Their Confirmation: Hammer Candlestick Pattern and Hanging Man Candle Pattern

Hammer Bullish Candle Patterns

Reversal candlestick patterns occur after an extended prior trend. Therefore, for a candle pattern to qualify as a reversal gold pattern there must be a prior trend.

These reversal candlestick patterns are:

1. Hammer Candle Pattern & Hanging Man Candle Pattern
2. Inverted Hammer Candle Pattern & Shooting Star Candle Pattern
3. Piercing Line Candle Pattern & Dark Cloud Cover Candle Pattern
4. Morning Star Candles & Evening Star Candles
5. Engulfing Candles Patterns

Hammer Candlestick Pattern & Hanging Man Candlestick

Hammer Candle Pattern & Hanging Man Candlestick Pattern candles look alike but hammer is bullish reversal gold pattern and hanging man is a bearish reversal gold pattern.

Hammer Candle Pattern & Hanging Man Candle Pattern

Hammer Candlestick

Hammer is a potentially bullish pattern which forms during a downwards trend. It is named so because the xauusd market is hammering out a market bottoms.

A hammer 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

Hammer Candle

Technical Analysis of Hammer Candles Pattern

The 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.

Stop orders should be set a few pips just below low of the hammer candle.

Hanging Man Candlestick

This gold pattern is a potentially bearish reversal gold trading signal that occurs during a upward trend. It is named so because it looks like a man hanging on a noose up high.

A hanging man candlestick 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

Hanging Man Candle

Technical Analysis of Hanging Man XAUUSD Candlesticks

The sell signal is confirmed when a bearish candlestick closes below the open of the candle on left-side of this hanging man candle pattern.

Stop orders should be placed a few pips just above high of hanging man candle.