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