Reversal Candle Patterns - Inverted Hammer Candle Pattern

Inverted Hammer Bullish Gold Candles Patterns

Inverted Hammer Candles Pattern and Shooting Star Candles 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 xauusd trend (star) or the bottom of a xauusd market xauusd trend (hammer).

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

Upward XAUUSD Trend Reversal - Shooting Star Candlesticks Pattern

Downward XAUUSD Trend Reversal - Inverted Hammer Candlesticks pattern

Inverted Hammer Candlesticks Pattern and Shooting Star Candle Pattern Gold Chart Patterns

Inverted Hammer Candles Pattern

Inverted Hammer Candle Pattern is a bullish reversal candles pattern. It forms at the bottom of a XAUUSD trend.

Inverted hammer candlesticks pattern occurs at the bottom of a xauusd down trend & indicates the possibility of reversal of the downwards XAUUSD trend.

Inverted Hammer Candlestick Patterns - How to Trade Inverted Hammer Candles Patterns - How to Analyze Inverted Hammer Candles Pattern

Analysis of Inverted Hammer Candlestick Pattern

A buy is confirmed when a candlestick closes above the neckline of the inverted hammer candlestick pattern, this is the opening gold price of the candlestick on the left side of this inverted hammer candlestick pattern. The neckline point in this case forms the resistance area.

Stop loss orders for the buy gold trades should be set few pips below the lowest gold price on the recent low of this inverted hammer candle sticks pattern.

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