The Harami Candlestick pattern is frequently used in Forex trading to identify trend reversals or extension. Harami Candle stick is a Japanese Candlestick that comprises of two candles which indicate the potential reversal or continuation market pattern. The word Harami is derived from the Japanese word for "Pregnant" which is representative of the Harami Candlestick pattern. While the Harami Candle stick pattern can signal both bullish and bearish indication.
How to Understand Bullish and Bearish Harami?
BULLISH HARAMI
- Established Downtrend
- Leading Large bearish candle
- Trailing smaller bullish candle- price gaps up after bearish candle and is contained within the open and close of the leading bearish candle.
BEARISH HARAMI
- Established Uptrend
- Leading large bullish candle
- Trailing smaller bearish candle- price gaps down after bullish candle and is contained within open and close of the leading bullish candle.
No comments:
Post a Comment