Bearish Harami

Bearish Harami for NT8
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A Bearish Harami is two bar candlestick pattern indicating a possible bearish reversal and may point towards a shift in market sentiment. To learn more, check out the video below:

What is a Bearish Harami

The first bar in a Bearish Harami is a large body up-close. The second bar is a small candle contained within the range of the prior bar. The large and small body requirements are determined by a minimum / maximum threshold. Specifically, the indicator is making a comparison between the last to bars and the average bar size in the reference period. The thresholds and the reference period used to establish the average are adjustable.

An internal Swing Trend indicator determines the current bias and a minimum deviation requirement is user selectable via the indicator dialogue box. The bullish equivalent to this pattern is the Bullish Harami.

However, as with other reversal patterns, theBearish Harami should be combined with other technical tools, such as advanced momentum oscillators, volume analysis or channel indicators to confirm. An example on how to do that was discussed in this post.

Other bearish candlestick patterns

Other bearish candlestick patterns include the bearish belthold, bearish engulfing, bearish harami cross, black marubozu, dark cloud cover, shooting star, gravestone doji, hanging man, evening star,evening doji star, long black candle, tweezers top, three black crows and the falling three methods.

TheBearish Harami and the above patterns may be identified with our candlestick pattern indicator for NinjaTrader 8. Check out the LizardIndicators Premium Section for more information.