Jul 31, 2022
Bullish Hamari Candlestick Pattern — How to trade them
The Bullish Harami candlestick pattern is a reversal pattern appearing at the bottom of a downtrend. On the first day of this pattern is a bearish candle with a large body, the next day is a bullish candle with a small body enclosed within the body of the prior candle. As a sign of changing momentum, the small bullish candle ‘gaps’ up to open near the mid-range of the previous candle. Some investors may look at a bullish harami as a good sign that they should enter a long position on a stock.
How to recognize it?
- The first candle of this pattern is a bearish candle showing bearish implications.
- In the second candle of this pattern, the price jumps up from the low of the previous candle for the price to open slightly higher.
- The second candle is not more than 25% the size of the first day's bearish candle.
How to trade them?
To trade the Bullish Harami pattern, you would wait for the second candlestick to form and then enter a long position at the opening of the third candlestick. Your stop loss would be placed below the low of the second candlestick and your target would be the previous high.
Recommendation
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