keep in your wacth list. high of 146 to be broken to the upside, then this pattern becomes valid.
When the harami pattern appears, it depicts a condition in which the market is losing its steam in the prevailing direction. The harami consists of a small real body that is contained within the preceding large candles' real body. The preceding candle tends to be very large in relation to the other candles around it.
What does a harami tell us about the condition of the market? During a bullish move, the harami tells us that strength in the previous candle is dissipating. This could be as a result of the bulls who have made gains in the stock may be taking a breather to either accumulate more shares or sell out of their existing positions. While the bias of the harami pattern indicates a reversal, I have noticed that the appearance of a harami formation in day trading can actually be quite bullish if the highs of the bar prior to the harami are broken to the upside. This would indicate that there was, in fact, buying going on within the harami bar.
When the harami pattern appears, it depicts a condition in which the market is losing its steam in the prevailing direction. The harami consists of a small real body that is contained within the preceding large candles' real body. The preceding candle tends to be very large in relation to the other candles around it.
What does a harami tell us about the condition of the market? During a bullish move, the harami tells us that strength in the previous candle is dissipating. This could be as a result of the bulls who have made gains in the stock may be taking a breather to either accumulate more shares or sell out of their existing positions. While the bias of the harami pattern indicates a reversal, I have noticed that the appearance of a harami formation in day trading can actually be quite bullish if the highs of the bar prior to the harami are broken to the upside. This would indicate that there was, in fact, buying going on within the harami bar.