| Candlestick
Harami Patterns
 Bullish
Harami Pattern
Bullish Reversal - Buy Signal
(with Confirmation)
The
Bullish Harami Line is a common type of bullish reversal
pattern. The formation of a Bullish Harami line does
not indicate that the investor should take action (buy
or sell). It simply means that the market MIGHT reverse
to the up side. Investors should always wait for confirmation
of this type of pattern formation before entering a
position.
 Bearish
Harami Pattern
Bearish Reversal - Sell Signal (with
Confirmation)
The
Bearish Harami Line is a common type of bearish reversal
pattern. The formation of a Bearish Harami lin does not
indicate that the investor should take action (buy or
sell) either. It simply implies that the market MIGHT
reverse to the down side. Investors should always wait
for confirmation of this type of pattern formation before
entering a position in the market.
Harami
lines are very common within the market. They often
form within congestion (or consolidation) of a market
trend. Investors should not be mislead by the formations
of Harami lines in a congesting market trend. Wait for
a confirmation of the Harami line formation before entering
a position. Also, investors should watch the chart for
signs that the markets activity after the Harami line
has broken above or below the previous trading range.
This type of market breakout is a much better sign that
the market may continue to trend.
The
term Harami translates to Pregnant in Japanese. The
actual meaning of the term is a body within a body.
CONTINUE
| 
