The Bearish Harami candlestick pattern is a reversal pattern. This is the name specific to the reversal point commonly seen on at the end of a growing uptrend.
Bearish Harami candlestick pattern does not have the accuracy as Engulfing or Hammer but this is a common pattern and has a correct rate of no less than 80% when used in combination with other indicators and patterns.
What is the Bearish Harami candlestick pattern?
This is a 2-candle pattern with the following simple features:
- Growing trend.
- Candle 1 is a long bullish candle
- Candle 2 is a bearish candle with a length equal to 1/4 of the length of the previous candlestick and close to the middle of the candle 1.
Open a position with the Bearish Harami candlestick pattern
It is necessary to consider the indicators of the market to decide the next position order. For example, the price hits resistance or catch the EMAs. When there are signs of a reversal from other indicators, you should watch out for the Bearish Harami candlestick pattern that appears. Then combine with the RSI indicator to increase the accuracy.
Or you can make a trade when the 3rd candle is in the middle of the 1st candle, the winning rate now is around 50%.
This type of candlestick pattern is only suitable for those who like to enter short positions, it is meaningless to enter long positions. If this occurs, open a short position as quickly as possible.