How Do I Analyze Candle Pattern?
How to Interpret a Candle Pattern
To identify a xauusd candle-sticks pattern you'll need to first learn about the various xauusd candle-sticks patterns & learn under which trade setup these patterns form on the chart & what xauusd signal is generated by each of these trading candle-sticks patterns.
Among the various popular xauusd candlesticks patterns that every trader should know are:
Doji Candlesticks
This is a xauusd candlestick pattern with the same opening & closing price. There are various types of doji candlesticks pattern which form on charts.
following example show various patterns of the doji candle:
Long legged doji candlestick pattern has long upper & lower shadows with the opening and closing price at the middle. When Long-legged doji appears on a chart it shows indecision between the traders, buyers and sellers.
Below is an example screenshot image of the Long Legged Doji candlestick pattern
Doji Pattern - Doji Candle Sticks - Trading Identify a Candle Pattern
Doji Pattern - Doji Candles
Marubozu Candlesticks
Marubozu candle stick pattern are long candlesticks which have no upper or lower shadows, Like shown and portrayed below.
Marubozu Candlesticks - Marubozu Candle Sticks - Trading Identify a Candle Pattern
Marubozu candlestick pattern are continuing xauusd candlestick patterns that show gold price is going to continue in same direction as that of marubozu candlestick. The marubozu candlesticks pattern can be white/blue or black/red depending on the direction of the market trend.
Spinning Tops Candles
Spinning tops xauusd candle stick pattern have a small body with long upper & lower shadows. These spinning tops candlesticks are referred to by this term because these candlesticks formations are similar to spinning tops on a matchstick.
The upper and lower shadows of the spinning tops candle-sticks pattern are longer than the body. Xauusd examples shown below shows the spinning tops candle pattern. You can look for the pattern on your MT4 Platform xauusd charts. The xauusd example displayed below shows a screen-shot to help traders when it comes to learning & understanding these xauusd candlestick pattern.
How to Read Candle-stick Charts - Spinning Tops Candle Sticks - Trading Identify a Candle Pattern
Colour of the spinning tops candle candles pattern isn't very important, this formation show indecision between the buyers and sellers in Gold market. When these xauusd setups appear at the top of a xauusd trend or at the bottom of market trend it might signify that the market trend is coming to an end and it might soon reverse & begin going in the other direction. However, it's best to wait for confirmation signals that the direction of a xauusd has reversed before trading the signal from the candlestick pattern formation.
Hammer Candle Pattern and Hanging Man Candle Pattern Candlesticks
Hammer Candle Pattern and Hanging Man Candle Pattern candle look alike but hammer is bullish xauusd trade reversal candlestick pattern and hanging man is a bearish xauusd trade reversal candlestick pattern.
Hammer Candle Pattern and Hanging Man Candle Pattern - Candlesticks
Hammer Candles
Hammer xauusd candle stick pattern is a potentially bullish xauusd candle stick pattern which occurs during a downwards xauusd trend. It's named so because the market is hammering out a bottom.
Hanging Man Candles
This hanging man candlestick pattern is a potentially bearish xauusd reversal signal which forms during a upwards xauusd trend. It's named so because it resembles a man hanging on a noose up high.
Hanging Man Candle Pattern - Candlesticks
Inverted Hammer Candles
This is a bullish xauusd reversal candlestick pattern. It occurs at the bottom of a market trend.
Inverted hammer candle pattern occurs at the bottom of a downward xauusd trend & indicates the possibility of reversal of the downwards trend.
Inverted Hammer Candle Pattern - Trading Identify a Candle Pattern
Shooting Star Candles
Shooting Star is a bearish xauusd reversal candlestick pattern. It occurs at the top of a market trend.
Shooting Star xauusd candle pattern occur at the top of an upward xauusd trend in the XAUUSD market where the open price is same as the low & gold price then rallied up but was forced back downwards to near the open.
Shooting Star Candle - Candlesticks
Piercing Line Candles
Piercing line candle pattern is a long black body followed by a long white body candlestick.
White body pierces the midpoint of the prior black body.
This Piercing Line xauusd candle pattern is a bullish xauusd reversal candle pattern that occurs at the bottom of a xauusd market downwards xauusd trend. It shows that the market opens lower and closes above the midpoint of the black body.
This Piercing Line xauusd candle pattern highlights that the momentum of the downward xauusd trend is reducing and the market trend is likely to reverse and move in an upwards direction.
This Piercing Line xauusd candlestick pattern is displayed referred to as a piercing line signifying the market is piercing the bottom showing a xauusd market floor for xauusd price downwards trend.
Piercing Line Candle Pattern - Candlesticks
Dark Cloud Cover Candles
Opposite of piercing candlestick candle.
This candle-stick is a long white body followed by a long black body.
Black body pierces the mid point of the prior white body.
This is a bearish xauusd reversal pattern that forms at the top of an upwards xauusd trend.
Dark Cloud Cover xauusd candlestick pattern that the market opens higher & closes below the midpoint of the white body.
Dark Cloud Cover xauusd candle pattern highlights that the momentum of the upward trend is reducing and the market trend is likely to reverse & move in a downwards xauusd trade direction.
Dark Cloud Cover xauusd candle pattern is shown known as a cloud cover signifying the cloud as a ceiling for xauusd price up-wards trend.
Dark Cloud Cover Candle Pattern - Candlesticks
Morning Star Candles
Morning Star Candle Pattern - Candlesticks
Evening Star Candles
Opposite of the morning star trading candlesticks pattern
Evening Star Candle Pattern - Candlesticks
Candles
Engulfing is a reversal candlestick pattern that can be bearish or bullish depending upon whether it appears at end of a xauusd market downwards xauusd trend or at the end of a xauusd market upwards xauusd trend.
Bullish and Bearish Engulfing Candle-sticks Patterns - Candlesticks
Drawing Candles on MetaTrader 4 - Candles Patterns Explained for Day Trading
Candle Sticks patterns that every trader should know.
Read a Candle Pattern
