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

Hammer Bullish XAUUSD Candlestick Patterns

Reversal candlestick patterns occur after an extended prior trend. Therefore, for a candlestick pattern to qualify as a reversal gold pattern there must be a prior trend.

These reversal candlestick patterns are:

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

Hammer XAUUSD Candlestick Pattern and Hanging Man XAUUSD Candlestick

Hammer Gold Candlestick Pattern and Hanging Man XAUUSD Candlestick Pattern candlesticks look alike but hammer is bullish reversal gold pattern and hanging man is a bearish reversal gold pattern.

Hammer Gold Candlestick Pattern and Hanging Man XAUUSD Candlestick Pattern

Hammer Candlestick

Hammer is a potentially bullish pattern that occurs during a gold downward xauusd 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 Candlesticks

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

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

Hanging Man Candlestick

This gold pattern is a potentially bearish reversal gold signal that occurs during a gold upward xauusd 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 Candlesticks

The sell gold 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.