What Is a Bearish Harami?

Jul 9 18:23

A bearish harami is a two-bar Japanese candlestick pattern indicating that prices may shortly reverse downwards. The pattern contains a long white candle and a small black candle. The body of the first candle must include both the opening and closing prices of the second candle. A bearish harami first forms after an uptrend.

It can be better understood with a bullish harami, which is opposite to it.

Understanding Bearish Harami

The second candle's size defines how powerful the pattern is; the smaller it is, the more likely a reversal is to occur. A bullish harami indicates that prices may reverse to the upside, is the opposite pattern to a bearish harami.

A bearish harami is frequently used in conjunction with other technical indicators by traders to enhance its potency as a trading signal. When a bearish harami emerges during a retracement, a trader may utilize the 200-day moving average to confirm that the market is in a long-term decline.

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This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. Read more

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