Hammer, Shooting Star & Marubozu Candlesticks

Candlestick is one of the most common chart types in the gold price chart system. It is also a common chart, easy to observe and analyze for a non-professional. Let's learn about the Hammer, Shooting Star, and Marubozu candlestick patterns in the article below.

What is a Candlestick Gold Price Chart?

Candlestick Chart, also known as a candlestick chart, is a type of chart that shows the price fluctuations of each trading session through color and length. These two elements clearly represent two values: whether the value is trending up or down, and the price difference between the beginning and end of each trading session.

Candlestick charts are widely used to show the price fluctuations of gold in the market. Its advantage over other methods of showing price fluctuations is its intuitiveness. Observing the chart helps us immediately see the trend of price changes in the market over a certain period, and the extent of price differences in scale and magnitude.

For a regular price observer, this is a suitable chart type to start learning and analyzing prices intuitively and accurately.

Hammer and Shooting Star Candlesticks

These are candlestick patterns with small or empty bodies, no lower shadow, and a long upper shadow. The position where these two candlestick patterns appear on the price chart determines their different names. For example, if the candlestick appears at the bottom of a downtrend, it is called an Inverted Hammer, and if it appears at the top, it is called a Shooting Star. These are two candlestick patterns that indicate a reversal of the price trend in the market.

The way to observe and identify price movement trends is similar to the Hammer pattern. The appearance of Hammer and Shooting Star candlesticks reflects the reversal of trading sessions. If the trend is increasing, it will decrease in the future; if the gold price trend is decreasing, it will increase in the future. The long lower shadow indicates that the distance between the lowest price and the opening price is very close, and the closing price and the highest price are far apart.

Overall, the appearance of this candlestick pattern indicates that the gold price is either hitting a bottom or a top, at which point investors should decide to sell (if at the top) or buy (if at the bottom) gold to optimize profits for their projects.

Marubozu Candlestick

A Marubozu candlestick is a powerful candlestick with no shadows. The opening price is the lowest and the closing price is the highest, or vice versa. The color of the candlestick indicates the convergence of prices. For a green candlestick, the closing price coincides with the highest price; for a red candlestick, the closing price coincides with the lowest price. The color also indicates the gold trading trend at a specific time. Green indicates strong buying, while red indicates strong selling. If three consecutive Marubozu candlesticks of the same color appear, it reflects a strong increase in buying or selling pressure.

The appearance of this candlestick indicates that there was no hesitation from investors during the trading session. At the end of the session, the price did not reverse but coincided with the highest or lowest price, depending on the candlestick's color. This shows that investors have a strong direction, decisive action, and a tendency for high committed profits in this context. Therefore, if you are undecided, this is an opportune time to liquidate your gold holdings or reinvest in gold.

The two candlestick patterns above represent two situations where investors should decide to liquidate or invest in gold: when the price is about to hit a bottom or a top, and when the market value is trending consistently up or down. This change creates stable and certain profits when you invest in gold.