Description
Harami is a trend reversal candlestick pattern consisting of two candles. Depending on their heights and collocation, a bullish or a bearish trend reversal can be predicted.
The bearish Harami reversal is recognized if:
-
The first candle is long and bullish and continues the uptrend;
-
The second candle is short and its body is completely engulfed by the first candle's body.
The bullish Harami reversal is recognized if:
-
The first candle is long and bearish and continues the downtrend;
-
The second candle is short and its body is completely engulfed by the first candle's body.
Input Parameters
| Parameter | Description |
|---|---|
length
|
The number of candles used to calculate the average body height. If the body height of a candle exceeds this average, it is considered long. |
trend setup
|
The number of preceding candles to check if the trend exists. |
body factor
|
The factor used when checking if a candle is short. A candle is considered short if its body height is lower than the average multiplied by this factor. |
Plots
| Plot | Description |
|---|---|
Bearish
|
The bearish Harami candlestick pattern. |
Bullish
|
The bullish Harami candlestick pattern. |
For educational purposes only. Not a recommendation of a specific security or investment strategy.
Technical analysis is not recommended as a sole means of investment research.
Past performance of a security or strategy does not guarantee future results or success.