Oil 10-Minute Hammer-Negation Strategy with Moving-Average Filters

Summary

The document presents an oil strategy on 10-minute bars built around a two-candle hammer-negation pattern. A first candle has its body near one end of its range; the following candle’s body must move into or beyond the prior candle’s shadow, with its body size exceeding a specified fraction of its range. The strategy combines the bearish pattern with price below three moving averages, and the bullish pattern with price above them. It enters short or long at market and uses separate trailing-stop distances for long and short positions.

The author says only the trailing-stop levels were optimized; moving-average periods and pattern parameters were not, and no profit target was included. The post describes walk-forward results as impressive but supplies no detailed figures or validation procedure here. It also flags limited historical data, stating that the available history is under 100,000 bars. The shared example is therefore a candidate rule set, not evidence of robust performance; results may depend on the platform’s pattern definitions, fills, and the limited sample.

Key ideas

• The strategy identifies a two-candle hammer-negation pattern on 10-minute oil bars.
• It requires price to be above or below three moving averages to confirm long or short direction.
• Entries are made at market, with different trailing-stop distances for long and short trades.
• The author says the trailing stops were optimized while other parameters and profit targets were not.
• The post claims promising walk-forward results but notes that its history contains fewer than 100,000 bars.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.