Hammer Bullish Candlestick Patterns

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

The reversal candlestick patterns are:

Hammer Candles Setup & Hanging Man Candle Pattern
Inverted Hammer Candles Setup & Shooting Star Candlestick Pattern
Piercing Line Gold Candle Pattern & Dark Cloud Cover Candle Pattern
Morning Star Candles and Evening Star Candles
Engulfing Candles Patterns

Hammer Candlesticks Pattern and Hanging Man Candle Pattern

Hammer Candlesticks Pattern and Hanging Man Candlestick Setup candles look alike but hammer is bullish reversal candlestick pattern and hanging man is a bearish reversal candle pattern.

How to Trading Hammer Candle Pattern Bearish or Bullish

Hammer Candlesticks Pattern & Hanging Man Candlestick Pattern

Hammer Candles Setups

Hammer is a potentially bullish pattern which forms during a downwards trend. It is named so because the market is hammering out a bottom.

A hammer has:

A small body
The body is at the top
The lower shadow is 2 or 3 times length of real body.
Has no upper shadow or very small upper shadow if present.
The colour of the body isn't important

How to Trade Hammer Candlestick in Uptrend - How to Analyze Hammer Candle Setup Technical Analysis

Hammer Candlesticks

Technical Analysis of Hammer Candles Setups

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

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

Inverted Hammer Bullish Candlestick Patterns

Inverted Hammer Candlesticks Setup & Shooting Star Candlestick Pattern candle-sticks look similar. These candlesticks have a long upper shadow & a short body at the bottom. Their color doesn't matter. What matters is the point where these candle-sticks appear whether at the top of a trend (star) or the bottom of a trend (hammer).

The difference is that inverted hammer candlestick is a bullish reversal candlestick while shooting star candlestick is a bearish reversal candle pattern.

Upwards Trend Reversal - Shooting Star Candles

Downwards Trend Reversal - Inverted Hammer Candles

Types of Hammer Candle Setups - Hammer Bullish Candlestick Patterns

Inverted Hammer Candlesticks Setup & Shooting Star Candlestick Pattern Chart Setups

Inverted Hammer Candlestick

This is a bullish reversal candlestick setup. It occurs at the bottoms of a Gold trend.

Inverted hammer occurs at the bottom of a down trend & indicates possibility of reversal of the downward trend.

Hammer Bullish Candle Setups - Reversal Candle Patterns

Inverted Hammer Candle

Technical Analysis of Inverted Hammer Candlestick

A buy is confirmed when a candlestick closes above neck line, this is the opening of the candlestick on the left side of this pattern. The neck-line point in this case forms the resistance zone.

Stop orders for the buy xauusd trade transactions should be set a couple of pips below the lowest price on the recent low.

An inverted hammer candle is named so because it shows that the market is hammering a bottom.

Learn More Topics & Lessons:

Trade Gold Trading

Hammer Bullish Candlestick Patterns