11 January 2021
Glossary
Bearish harami
Bearish harami

The bearish harami pattern consists of two candles and signals a possible bearish reversal in the market. It is important to note that the harami candlestick pattern cannot be used in isolation and its signal must be confirmed by other indicators.

The bearish harami pattern consists of two candles and signals a possible bearish reversal in the market. It is important to note that the harami candlestick pattern cannot be used in isolation and its signal must be confirmed by other indicators.
A bearish harami pattern is a reversal pattern that appears on the chart at the top of an uptrend. The pattern consists of a bullish candle with a large body, followed by a bearish candle with a small body that is completely within the body of the first candle.
A bearish harami pattern appears at a peak (when a new high is established), so after a reversal, the price of an asset may fall below the lower highs set earlier. Subsequent price action confirms the assumption of a new downward impulse signaled by the harami pattern.
The stop can be placed slightly above the new price high, and the trader can enter the market at the opening level of the candle following the harami pattern. Since, in theory, harami appears at the start of a downtrend, traders can use multiple target levels to maximize profits from the entire downtrend range.
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