Candlestick Pattern is considered a reversal pattern. Bearish Harami: A bearish Harami occurs when there is a large bullish green candle on Day 1 followed by a smaller bearish or bullish candle on Day 2. The most important aspect of the bearish Harami is that prices gapped down on Day 2 and were unable to move higher back to the close of Day 1. This is a sign that uncertainty could be entering bearish harami pattern forex charts market.
Bullish Harami: A bullish Harami occurs when there is a large bearish red candle on Day 1 followed by a smaller bearish or bullish candle on Day 2. Again, the most important aspect of the bullish Harami is that prices gapped up on Day 2 and price was held up and unable to move lower back to the bearish close of Day 1. The first Harami pattern shown above on the chart of the E-mini Nasdaq 100 Future is a bullish reversal Harami. First there was a long bearish red candle.
Second, the market gapped up at the open. In the case above, Day 2 was a bullish candlestick, which made the bullish Harami look even more bullish. Harami Candlestick Potential Buy Signal A buy signal could be triggered when the day after the bullish Harami occured, price rose higher, closing above the downward resistance trendline. A bullish Harami pattern and a trendline break is a combination that potentially could resulst in a buy signal. The second Harami pattern shown above on the chart of the E-mini Nasdaq 100 Future is a bearish reversal Harami.
The first candle was a long bullish green candle. On the second candle, the market gapped down at the open. Harami Candlestick Potential Sell Signal A sell signal could be triggered when the day after the bearish Harami occured, price fell even further down, closing below the upward support trendline. When combined, a bearish Harami pattern and a trendline break might be interpreted as a potential sell signal. The information above is for informational and entertainment purposes only and does not constitute trading advice or a solicitation to buy or sell any stock, option, future, commodity, or forex product. Past performance is not necessarily an indication of future performance.