Bullish Harami Candlestick Pattern

A Bullish Harami candlestick is similar to an inside day in contemporary western analysis. But while an inside day is usually considered neutral, the harami line or cross is an indication of a waning of momentum. The small body of the harami line is contained within the long body directly preceding it. If the harami line is also a doji, it is referred to as a harami cross. These patterns indicate that the market is at a point of indecision and a trend change, or a reversal, is possible. We have found the harami cross pattern is useful in forecasting trend changes, especially after a long red body in a downtrend. [View Example]