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Harami

The Harami is also a reversal pattern. Bullish Haramis reverse down trends and Bearish Haramis reverse up trends. See the example of a Bullish Harami below. It has a long bearish candle followed by a small bodied candle that is contained within the body of the former candle. It indicates the downward momentum may be drying up and that the trend may be reversing. This one also happens to be confirmed by a double bottom which we’ll refer to later on.

Chart Example

The Bearish Harami is found at the top of an up move and is a reversal signal. See the chart below.

Chart Example



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