Hammer Bullish Candle Patterns
Hammer Bullish Candle Patterns
Reversal candlestick patterns occur after an extended prior trend. Hence, for a candle pattern to qualify as a reversal candle setup there must be a prior trend.
The reversal candlestick patterns are:
- Hammer Candles Setup and Hanging Man Candle Pattern
- Inverted Hammer Candles Setup & Shooting Star Candle Pattern
- Piercing Line Gold Candlestick Pattern & Dark Cloud Cover Candlestick Pattern
- Morning Star Candles and Evening Star Candles
- Engulfing Candlesticks Patterns
Hammer Candlesticks Pattern and Hanging Man Candle Pattern
Hammer Candlesticks Pattern & Hanging Man Candle Setup candles look alike and similar but hammer is a bullish reversal candlestick pattern & hanging man is a bearish reversal candlestick pattern.
Hammer Candlesticks Pattern & Hanging Man Candle Pattern
Hammer Candles Setups
Hammer is a potentially bullish pattern which forms during a downward trend. It's named and called 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 length of real body.
- Has no upper shadow or very small upper shadow if present.
- The colour of the body is not important
Hammer Candles
Technical Analysis of Hammer Candles Setups
The buy signal gets 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 placed a few pips just below low of the hammer candlestick.
Inverted Hammer Bullish Candle Patterns
Inverted Hammer Candlesticks Setup and Shooting Star Candlestick Pattern candlesticks look similar. These candles have a long upper shadow and a short body at the bottom. Their colour does not matter. What matters is the point where these candle-sticks appear whether at the top of a market trend (star) or the bottom of a market trend (hammer).
The difference is that inverted hammer candle is a bullish reversal candle while shooting star candlestick is a bearish reversal candlestick pattern.
Upward Trend Reversal - Shooting Star Candles
Downward Trend Reversal - Inverted Hammer Candlesticks
Inverted Hammer Candlesticks Setup & Shooting Star Candlestick Pattern Setups Patterns
Inverted Hammer Candlestick
This is a bullish reversal candle setup. It occurs at the bottoms of a Gold trend.
Inverted hammer occurs at the bottom of a down trend and reflects possibility of reversal of the downward trend.
Inverted Hammer Candle
Technical Analysis of the Inverted Hammer Candlestick
A buy is confirmed when a candlestick closes above neck line, this is the opening of the candle onto the left side of this pattern. The neck-line point in this case creates the resistance zone.
Stop orders for the buy xauusd trades should be set a couple of pips below the lowest price on the recent low.
An inverted hammer candle is named & called so because it shows that the market is hammering a market bottom.
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