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The Harami Japanese Candlestick

Discussion in 'Forex Discussions' started by painofhell, Feb 2, 2016.

  1. painofhell

    painofhell Content Contributor

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    The Harami is a Japanese Candlestick pattern that may be indicating a reversal, and it consists of a large candlestick followed by a smaller candlestick whose body is completely within within the vertical range of the previous larger candlestick. In Japanese, Harami means pregnant.

    The bullish Harami is a downward black-colored candlesticks engulfing a small white candlestick, which gives a sign of a reversal of the downward trend. The smaller the second (white) candlestick, the more likely the reversal.

    The bearish Harami is an upward white-colored candlesticks engulfing a small black candlestick, which gives a sign of a reversal of the upward trend. The smaller the second (black) candlestick, the more likely the reversal.
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    The most important characteristic of the bearish Harami is that prices gaped down on the second time period, and was unable to move higher back to the close of the first time period. As well as the bearish Harami, The most important characteristic of the bullish Harami is that prices gaped up on the second time period, and was unable to move lower back to the close of the first time period.
     
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