What's a Hammer Candlestick in XAUUSD?
What Does Hammer Candlestick Mean? Hammer Candle Definition
Hammer xauusd candlestick pattern is a potentially bullish candle pattern which occurs during a xauusd downwards trend. It is named so because the xauusd market is hammering out a market bottom.
A hammer candle-stick 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 color of the body isn't important
What is a Hammer Candlestick in XAUUSD? - Hammer Candle Pattern
XAUUSD Candlestick Pattern
The buy trading signal is confirmed when a candlestick closes above the opening gold trading price of the candle on the left side of the hammer candlestick pattern.
Stop orders should be set a few pips just below the low of hammer candle-stick.
