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

Hammer Bullish Gold Candlestick Patterns

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

These reversal candlestick patterns are:

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

Hammer Candlestick Pattern & Hanging Man Candle Pattern

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

Hammer Candle Pattern and Hanging Man Candle Pattern

Hammer Candlestick

Hammer is a potentially bullish pattern which occurs during a xauusd 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 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 Candlestick

Technical Analysis of Hammer Candlesticks Pattern

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

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

Hanging Man Candlestick

This xauusd pattern is a potentially bearish reversal xauusd trading signal that forms during a xauusd upwards trend. It's 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 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

Hanging Man Candlestick

Technical Analysis of Hanging Man XAUUSD Candlesticks

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

Stop orders should be set few pips just above the high of hanging man candlestick.