Reversal Candlestick Gold Chart Patterns - Inverted Hammer Bullish Gold Candlestick Patterns

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

Hammer XAUUSD Candles Pattern and Hanging Man XAUUSD Candle Pattern

Hammer Gold 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 Candles Pattern and Hanging Man XAUUSD Candle Pattern

Hammer XAUUSD Candles Patterns

Hammer is a potentially bullish pattern that occurs during a xauusd downward 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 XAUUSD Candlesticks Patterns

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

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

Inverted Hammer Bullish XAUUSD Candle Patterns

Inverted Hammer Gold 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 market xauusd trend (star) or the bottom of a market xauusd trend (hammer).

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

Upward XAUUSD Trend Reversal - Shooting Star Candlesticks

Downward XAUUSD Trend Reversal - Inverted Hammer Candlesticks

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

Inverted Hammer XAUUSD Trading Candle

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

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

Inverted Hammer XAUUSD Trading Candle

Technical Analysis of Inverted Hammer XAUUSD Trading Candle

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 point in this case forms the resistance level.

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

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