๐จ๐จ #CandleStickPattern ๐จ๐จ
โ What is the "Harami" Pattern in Trading? ๐ค๐ก
๐น The Harami pattern is a two-candle formation that signals potential trend reversals. ๐๐
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๐ฅ Key Features of the Harami Pattern:
โ Two Contrasting Candles: The first candle is large, while the second is smaller and inside the first one. ๐ฅ๐ฉ
โ "Pregnant" Pattern: The larger candle is called the "mother," and the smaller one is the "foetus." ๐คฐ
โ Rare but Powerful: A confirmed Harami pattern can signal a trend reversal or slowdown. โ ๏ธ
โ Position Matters: If the small candle is centered within the larger one, the signal is stronger. ๐ฏ
โ Short Shadows = Stronger Pattern: The smaller the body and shadows of the second candle, the more significant the signal. ๐
โ Trend Reversal Signal: Often appears after a strong uptrend or downtrend. ๐ฆ
โ Confirmation is Key: Always wait for additional confirmation from subsequent candles before making a move. ๐
โ Works Best in Strong Trends: If the market is trending, a Harami can indicate a shift in momentum. ๐
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๐ How to Trade the Harami Pattern?
๐น Look for it at key support or resistance levels. ๐๐
๐น Wait for confirmationโdon't rush into trades! โก
๐น Use additional indicators (RSI, MACD, volume) for stronger confirmation. ๐
๐น Place stop-loss orders to manage risk. ๐