Trading Identify a Candle Pattern

To identify a candles setup you will need to first learn about the various candlesticks patterns & learn under which setup these patterns form on the gold chart & what gold signal is generated by each of these candles patterns.

Among the various popular candles patterns that every gold trader should know are:

Doji Candlesticks

This is a candle pattern with same opening and closing price. There are various types of doji candlesticks setup that form on Gold charts.

following examples explain different patterns of the doji candle:

Long legged doji candlestick pattern has long upper & lower shadows with the opening & closing price at the mid. When the Long-legged doji pops up on a trading chart it demonstrates indecision between the traders, buyers & sellers.

Below is example screenshot screenshot of the Long Legged Doji candlesticks setup

Doji Chart Pattern - Doji Gold Candlesticks - How to Identify a Candle Pattern

Doji Chart Pattern - Doji Gold Candles

Marubozu Candles

Marubozu candle-stick pattern are long candlesticks that have no upper or lower shadows, Like shown below.

Marubozu Candle Sticks - Marubozu Gold Candlesticks - How to Identify a Candle Pattern

Marubozu gold candle-stick pattern are continuing candlestick patterns that show price is going to continue in same direction as that of the marubozu candlestick. The marubozu candlesticks setup can be white/blue or black/red depending on direction of the market trend.

Spinning Tops Candles Gold Candlesticks

Spinning tops gold candle-stick setup pattern have a small body with long upper and lower shadows. These spinning tops candlesticks patterns are referred to by this name because these candlesticks arrangements are similar to spinning tops on a match-stick.

The upper & lower shadows of the spinning tops candles set-up are longer than the body. The examples shown and explained below illustrates the spinning tops candle pattern. You can look for the pattern in your MT4 Platform gold charts. The examples illustrated and explained below shows a screenshot to help traders when it comes to learning & understanding these gold candle-stick pattern.

How Do I Read Gold Candlestick Charts - Spinning Tops Gold Candlesticks - How to Identify a Candle Pattern

Color of the spinning tops candle candle-sticks setup isn't very important, this pattern show the indecision between the buyers and sellers in the Gold market. When these chart patterns appear at the top of a trend or at the bottom of the gold trend it may trading signal that the trend is coming to an end and it may soon reverse and begin going the other direction. However, it's better to wait for confirmation signals that the direction of a market trend has reversed before trading the signal from this gold candle pattern formation.

Hammer Candlestick Pattern & Hanging Man Candlesticks

Hammer Candlestick Pattern and Hanging Man Candlestick Pattern candlesticks look alike but hammer is bullish reversal candlestick pattern and hanging man is a bearish reversal candle-stick pattern.

Hammer Candle Pattern and Hanging Man Candle Pattern - Candles

Hammer Gold Candlesticks

Hammer gold candle-stick set-up is a potentially bullish gold candle-stick setup which forms during a downwards trend. It's named so because the market is hammering a market bottom.

Hanging Man Gold Candlesticks

This hanging man candlestick pattern setup is a potentially bearish gold reversal signal which occurs during a upwards trend. It is named so because it looks like a man hanging on a noose up high.

Hanging Man Candlestick Pattern

Inverted Hammer Candlesticks

This is a bullish reversal candlestick pattern. It forms at the bottom of a trend.

Inverted hammer candlestick pattern forms at the bottom of a down gold trend & indicates possibility of a market reversal of the downwards trend.

Inverted Hammer Candle Pattern - Candlesticks - How to Identify a Candle Pattern

Shooting Star XAUUSD Candlesticks

Shooting Star is a bearish reversal candle pattern. It occurs at the top of a trend.

Shooting Star gold candle-stick pattern form at the top of an up trend in the market where the open price is same as the low and price then rallied up but was pushed back downwards to close near the open.

Shooting Star Candle - Candles

Piercing Line Gold Candlesticks

Piercing line candlestick setup pattern is a long black body followed by a long white body stick.

The white body pierces the mid-point of the prior black body.

This Piercing Line gold candle pattern is a bullish reversal candle pattern that forms at the bottom of a market downward trend. It shows that the market opens lower & closes above the mid-point of the black body.

This Piercing Line gold candle-stick pattern portrays that the momentum of the down gold trend is reducing and the price trend is likely to reverse & move in an upwards direction.

This Piercing Line gold candle pattern is shown referred to as a piercing line signifying the market is piercing the bottoms illustrating a market floor for the price down-wards trend.

Piercing Line Candle Pattern - Candles

Dark Cloud Cover Gold Candlesticks

Opposite of piercing candlestick candle.

This candlestick 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 reversal xauusd set-up which forms at the top of an upwards trend.

Dark Cloud Cover gold candle-stick set-up that the market opens higher and closes below the mid-point of the white body.

Dark Cloud Cover gold candle pattern portrays that the momentum of the up trend is reducing and the price trend is likely to reverse & move in a downwards gold trade direction.

Dark Cloud Cover gold candle pattern is cited referred to as a cloud cover signifying the cloud as a ceiling for the price upwards trend.

Dark Cloud Candlestick Pattern

Morning Star Gold Candlesticks

Morning Star Candle Pattern - Candles

Evening Star Gold Candlesticks

Opposite of the morning star candlesticks setup

Evening Star Candle Pattern - Candles

Candlesticks

Engulfing is a reversal candle pattern that can be bearish or bullish depending upon whether it shows up at the end of a market down gold trend or at the end of a market up-wards trend.

Bullish & Bearish Engulfing Candles Setups - Candles

Drawing Candles on MT4 - Candlesticks Patterns Guide for Day Trading

Candlesticks patterns that every gold trader should know.

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