Reversal Candle Patterns - Hammer Candlestick Pattern
Hammer Bullish XAUUSD Candlesticks Pattern
Reversal candlesticks patterns occur after an extended prior trend. Therefore, for a candles pattern to qualify as a reversal candles pattern there must be a prior trend.
These reversal candlesticks patterns are:
- Hammer Candlesticks Pattern & Hanging Man Candle Pattern
- Inverted Hammer Candles Pattern and Shooting Star Candle Pattern
- Piercing Line XAUUSD Candlestick Pattern & Dark Cloud Cover Candle Pattern
- Morning Star Candles and Evening Star Candles
- Engulfing Candles Patterns
Hammer Candles Pattern & Hanging Man Candle Pattern
Hammer Candlesticks Pattern & Hanging Man Candlestick Pattern candles look alike but hammer candlesticks pattern is bullish reversal candlesticks pattern & hanging man is a bearish reversal candlestick pattern.
Hammer Candles Pattern and Hanging Man Candle Pattern
Hammer Candlesticks Patterns
Hammer Candlesticks Pattern is a potentially bullish candle pattern which occurs during a xauusd downwards 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 two or three times 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 Candles Pattern
The buy trading signal is confirmed when a candle closes above the opening gold price of the candle to the left side of this hammer candlestick pattern.
Stop-loss orders should be set a few pips just below the low of the xauusd hammer candlestick pattern.
