Hammer Bullish XAUUSD Candlestick Patterns

Hammer Bullish XAUUSD Candlestick Patterns

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

These reversal candlestick patterns are:

1. Hammer XAUUSD Candlesticks Pattern and Hanging Man XAUUSD Candlestick Pattern
2. Inverted Hammer XAUUSD Candlesticks Pattern and Shooting Star XAUUSD Candlestick Pattern
3. Piercing Line Gold Candlestick Pattern and Dark Cloud Cover XAUUSD Candlestick Pattern
4. Morning Star Candlesticks and Evening Star Candlesticks
5. Engulfing Gold Candlesticks Patterns

Hammer XAUUSD Candlesticks Pattern and Hanging Man XAUUSD Candlestick Pattern

Hammer XAUUSD Candlesticks Pattern and Hanging Man XAUUSD Candlestick Pattern candlesticks look alike but hammer is bullish reversal candlestick pattern and hanging man is a bearish reversal candlestick pattern.

Hammer XAUUSD Candlesticks Pattern and Hanging Man XAUUSD Candlestick Pattern

Hammer XAUUSD Candlesticks Patterns

Hammer is a potentially bullish pattern that occurs during a gold downward xauusd trend. It is named so because the xauusd market is hammering out a market bottom.

A hammer has:

• A small body
• The body is at the top
• The lower shadow is two or three times the length of the real body.
• Has no upper shadow or very small upper shadow if present.
• The color of the body is not important

Hammer Candlesticks

Technical Analysis of Hammer Gold Candlesticks Patterns

The buy gold signal is confirmed when a candlestick closes above the opening xauusd price of the candlestick on the left side of the hammer candlesticks pattern.

Stop orders should be place a few pips just below the low of the hammer candlestick.

Inverted Hammer Bullish XAUUSD Candlestick Patterns

Inverted Hammer XAUUSD Candlesticks Pattern and Shooting Star XAUUSD Candlestick Pattern candlesticks look alike. These have a long upper shadow and a short body at the bottom. Their color does not matter. What matters is the point where they appear whether at the top of a xauusd market trend (star) or the bottom of a xauusd market trend (hammer).

The difference is that inverted hammer is a bullish reversal candlestick pattern while shooting star is a bearish reversal candlestick pattern.

Upward Gold Trend Reversal - Shooting Star Candlesticks

Downward Gold Trend Reversal - Inverted Hammer Candlesticks

Inverted Hammer XAUUSD Candlesticks Pattern and Shooting Star Gold Candlestick Pattern Gold Chart Patterns

Inverted Hammer Candlestick

This is a bullish reversal candlestick pattern. It occurs at the bottom of a Gold trend.

Inverted hammer occurs at the bottom of a down gold trend and indicates the possibility of reversal of the downward xauusd trend.

Inverted Hammer Candlestick

Technical Analysis of Inverted Hammer Candlestick

A buy is confirmed when a candlestick closes above the neckline, this is the opening of the candlestick on the left side of this pattern. The neckline in this case is a resistance level.

Stop orders for the buy xauusd trades should be placed a few pips below the lowest xauusd price on the recent low.

An inverted hammer is named so because it signifies that the xauusd market is hammering out a bottom.