Reversal Candle-sticks Setup Patterns - Inverted Hammer Bullish Candles Setup Patterns
Hammer Bullish Candles Setup Patterns
Reversal candlesticks setups occur after an extended prior trend. Therefore, for a candlesticks pattern setup to qualify as a reversal candle-sticks pattern setup there must be a prior trend.
These reversal candlesticks setups are:
- Hammer Candles Pattern & Hanging Man Candles Pattern
- Inverted Hammer Candles Pattern & Shooting Star Candles Pattern
- Piercing Line Candles Pattern and Dark Cloud Cover Candles Pattern
- Morning Star Candles & Evening Star Candles
- Engulfing Candles Patterns
Hammer Candles Pattern and Hanging Man Candles Pattern Candles
Hammer Candles Pattern & Hanging Man Candles Pattern trading candlesticks look alike but hammer is bullish reversal candles pattern and hanging man is a bearish reversal candlesticks pattern.
Hammer Candlesticks Pattern and Hanging Man Candles Pattern Candles
Hammer Candles Setup Patterns
Hammer is a potentially bullish pattern that forms during a downwards trend. It's named so because the market is hammering a bottom.
A hammer 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 color of the body is not important
Hammer Candles
XAUUSD Analysis of Hammer Candles Setup Patterns
The buy signal is confirmed when a candles closes above the opening price of the candles on the left side of the hammer candles pattern.
Stop orders should be set a few pips just below the low of hammer candle.
Inverted Hammer Bullish Candles Setup Patterns
Inverted Hammer Candles Pattern and Shooting Star Candles Pattern xauusd candles look similar. These have a long upper shadow and a short body at the bottom. Their color does not matter. What matters is where they appear whether at the top of a market trend (star) or bottom of market trend (hammer).
Difference is that inverted hammer is a bullish reversal candles pattern while shooting star candle is a bearish reversal candlesticks pattern setup.
Upward Trend Reversal - Shooting Star Candlesticks
Downward Trend Reversal - Inverted Hammer Candlesticks
Inverted Hammer Candles Pattern and Shooting Star Candlesticks Pattern Candle-sticks Chart Setups
Inverted Hammer Candle
This is a bullish reversal candlesticks pattern setup. It occurs at the bottom of a market trend.
Inverted hammer occurs at the bottom of a downward trend & indicates the possibility of a market reversal of the downwards trend.
Inverted Hammer Candle
XAUUSD Analysis of Inverted Hammer Candlestick
A buy is confirmed when a candlesticks closes above the neck-line, this is the opening of candlesticks on the left side of this pattern. The neckline point in this case forms the resistance area.
Stop orders for the buy gold trades should be set few pips below the lowest price on the recent low.
An inverted hammer is named so because it indicates that the market is hammering out a bottom.
