1. The Hammer (Strong Single-Candle Signal)
This is one of the most reliable signals for gold. It happens when the price drops sharply but then "bounces" back within the same minute.
What it looks like: A very small body at the top with a long "tail" (wick) underneath.
What it means: Sellers tried to push the price down, but buyers were so aggressive they pushed it all the way back up. If you see this near $4,820—that is a strong "Buy" signal.
2. Bullish Engulfing (Strong Momentum Signal)
This is a two-candle pattern that shows a complete shift in power.
What it looks like: A small red candle followed by a much larger green candle that completely "swallows" or covers the red one.
What it means: The buyers didn't just stop the fall; they completely overwhelmed the sellers from the previous minute. This often marks the start of a fresh leg up toward your targeted area.
3. Morning Star (Three-Candle Confirmation)
The Setup:
A strong red candle (downward move).
A tiny, indecisive candle (looks like a plus sign or has a very small body).
A strong green candle that closes at least halfway up the first red candle.
What it means: The downtrend has "stalled" (the middle candle) and is now reversing.
