Trading Oil Interpret Hammer Crude Oil Trading Candlesticks Technical Analysis

Hammer candle pattern is a potentially bullish candle-stick pattern that forms during a oil downwards trend. It is named so because the crude oil market is hammering out a market bottoms.

A hammer oil candle pattern has:

• A small body
• The body is at the top
• The lower shadow is two or three times length of the real body.
• Has no upper shadow or very small upper shadow if present.
• The color of the body isn't important

Interpret Hammer Oil Trading Candle Pattern Bullish or Bearish

Technical Analysis of Hammer Crude Oil Candlesticks Pattern

The bullish reversal buy oil trading signal is confirmed when a candlestick closes above the opening crude oil price of the candle on the left side of the hammer candlestick pattern.

Stop loss orders should be placed a few pips just below low of the hammer candle once a trade is opened using this candle sticks pattern formation.