Arena Pharmaceuticals, Inc. (ARNA)

[ospreyeye]

$ARNA Chart from yesterday – BULLISH HARAMI CROSS cross that formed yesterday was confirmed today – strong move above EMA’s 4 & 8 – the middle Bollinger Band @ 2.00 is the key level to break – when the middle BB turns into support a new up trend can begin – good volume – MACD is pinched – keep an eye out for a bull cross – Fast STO is in the 50 to 80 bull zone – RSI is hitting the 50 to 70 bull zone –
http://www.candlesticker.com/Pattern.aspx?lang=en&Pattern=2103

Definition

This is a major bullish reversal pattern, which is even more significant than a regular Bullish Harami. The outline again looks like a pregnant woman, as with the Bullish Harami Pattern. However, now the baby is a Doji. Basically, the pattern is characterized by a black body followed by a Doji that is completely inside the range of the prior black body.

Recognition Criteria

1. The market is characterized by a prevailing downtrend.
2. A black body is observed on the first day.
3. The Doji that is formed on the second day is completely engulfed by the body of the first day.