How Do I Read Hammer Oil Trading Candles Pattern?

Hammer candle pattern is a potentially bullish candle pattern which occurs during a downwards oil trend. It is named so because the crude oil market is hammering out a market bottoms.

A hammer oil candlestick pattern 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 color of the body isn't important

How Do You Interpret Hammer Candlestick Oil Trading Pattern Bullish or Bearish?

Technical Analysis of Hammer Crude Oil Candles 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 candle 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.