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

Hammer Bullish Gold Candlestick Patterns

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

Hammer Candle Pattern and Hanging Man Candle Pattern

Hammer Candlestick Pattern and Hanging Man Candlestick Pattern candlesticks 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 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 Candlestick

Technical Analysis of Hammer Candles Pattern

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

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

Hanging Man Candlestick

This xauusd pattern is a potentially bearish reversal xauusd signal that occurs during a xauusd upward trend. It is named so because it resembles 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 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

Hanging Man Candlestick

Technical Analysis of Hanging Man XAUUSD Trading Candles

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

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