BEARISH HARAMI:-
DEFINITION:-
The Bearish Harami is a two-day bearish reversal pattern. A long green candle followed by a small red candle distinguishes this pattern. The second day’s red real body must reside within the first day’s green real body.
RULES FOR IDENTIFICATION:-
1. An uptrend must be in progress.
2. The first candle is white, reflecting the continuing bullish mood.
3. The second day’s candle gaps below the previous close on the opening, trades, and closes within the first day’s green real body.
4. The second day is a short day and must be red in colour.
5. The English translation of harami is “pregnant.” The first green candle depicts the mother candle, while the second short red candle depicts the fetus.
PROPER ACTION:-
Possible bearish reversal. Confirmation is required. Sell if there is a bearish confirmation candle that closes below the low of candles 1 and 2. Otherwise, the uptrend can continue.
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