Bullish harami candlestick pattern explained
Hello everybody, we'll be talking about a candlestick pattern known as harami patterns. Harami candlestick patterns are of two types bearish and bullish. These candlestick patterns are used by traders and technical analysts to find a potential price reversal trend in the market. Harami candlestick patterns are a part of two candlestick pattern in the technical analysis theory, where the first candle and the second candle have two different colours.
There are two types of harami patterns. The first is known as the bullish harami pattern, second is known as the bearish harami pattern. Let us talk about bullish harami pattern. Bullish harami pattern occurs during a downtrend and suggests a potential reversal to the upside as we have spoken earlier it consists of two candlesticks.
The first candlestick is a large red bearish candlestick that reflects a prevailing downtrend. The second candlestick is a green candlestick whose body is completely engulfed inside that red candlestick. Also keep in mind, bullish harami always happens at the end of a downtrend. So, whenever you're looking for a bullish harami candle always spot it at the end of a downtrend and not anywhere else.
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