Bullish Harami

Bullish Harami
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A Bullish Harami is two bar candlestick pattern indicating that a down trend may be coming to an end. It is bullish reversal pattern that may point to a shift in market sentiment. To learn more, check out the video below:

What is the Bullish Harami

The first bar in the Bullish Harami pattern is a large body down-close whereas the second is a small bar, contained within the range of the prior bars’s body. The large and small body size specifications are determined by a minimum / maximum threshold. This is found by making a comparison between the two last bars and the average bar size in the reference period.

The minimum / maximum thresholds, and the reference period used to establish the average are user selectable via the indicator dialogue box. An internal Swing Trend furthermore indicator determines the trend bias, adjustable as per deviation type and a multiplier setting. Finally, the bearish equivalent to this pattern is the Bearish Harami.

As with other reversal patterns, one should combine these patterns with other technical tools, such as advanced momentum oscillators, volume analysis and / or channel indicators. An example on how to confirm a candlestick price action setup was discussed in this post.

Other bullish candlestick patterns

Other bullish candlestick patterns include the bullish belthold, bullish engulfing, bullish harami cross, white marubozu, bullish piercing, bullish hammer, dragonfly doji, inverted hammer, morning star, morning doji star, long white candle, tweezers bottom, three white soldiers and the rising three methods.

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