Bullish Harami and Bearish Harami Pattern
Here's an explanation of each pattern:
Bullish Harami: The Bullish Harami is a bullish reversal pattern that consists of two candles. The first candle is a large bearish candle, indicating a downtrend. The second candle is a smaller bullish candle that is completely engulfed within the body of the previous bearish candle. The smaller bullish candle represents a decrease in selling pressure and a potential shift towards buying pressure. It suggests that the bears are losing control, and the bulls may take over, potentially leading to a trend reversal to the upside.
Bearish Harami: The Bearish Harami is a bearish reversal pattern that also comprises two candles. The first candle is a large bullish candle, indicating an uptrend. The second candle is a smaller bearish candle that is completely engulfed within the body of the previous bullish candle. The smaller bearish candle represents a decrease in buying pressure and a potential shift towards selling pressure. It suggests that the bulls are losing control, and the bears may take over, potentially leading to a trend reversal to the downside.
Both the Bullish Harami and Bearish Harami patterns are considered significant when they occur after an extended trend. They represent a potential loss of momentum and a possible trend reversal. However, as with any candlestick pattern, it's crucial to consider other technical indicators and analysis tools for confirmation before making trading decisions.
