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