Reversal Candle-sticks Patterns - Hammer Candle Pattern

Hammer Bullish Gold Candlesticks Pattern

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

These reversal candlesticks patterns are:

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

Hammer Candlesticks Pattern and Hanging Man Candlesticks Pattern Candlesticks

Hammer Candlesticks Pattern and Hanging Man Candlesticks Pattern trading candlesticks look alike but hammer candle-sticks pattern is bullish reversal candles pattern and hanging man is a bearish reversal candlesticks pattern.

Hammer Candlesticks Pattern and Hanging Man Candlesticks Pattern Candlesticks

Hammer Candlesticks Patterns

Hammer Candle Sticks Pattern is a potentially bullish candlesticks pattern that forms during a downwards trend. It's named so because the market is hammering out a bottom.

A hammer candle-sticks pattern has:

• A small body
• The body is at the top
• The lower shadow is 2 or 3 times the length of real body.
• Has no upper shadow or very small upper shadow if present.
• The colour of the body is not important

Hammer Candlesticks

XAUUSD Analysis of Hammer Candlesticks Pattern

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

Stoploss orders should be place a few pips just below the low of the hammer candle-sticks pattern.