What is a Hammer Crude Oil Trading Candlesticks Pattern?
What Does Hammer Candlestick Mean? Hammer Candle Definition
Hammer oil candlestick 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
What is a Hammer Candlestick in Oil Trading? - Hammer Candlestick Oil Trading Candle Pattern
Technical Analysis of Hammer Crude Oil Candles Pattern
The 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 oil candle pattern.
Stop orders should be placed a few pips just below the low of the hammer candle.
