AI
Friday, May 04, 2018 12:15:51 PM
Harami...A "tell" for imminent market directional change ...
(or-at-least-a-pause in the current direction)
It is relatively common and a fairly dependable pattern. It is described by a candlestick pair where the 1st stick is long bodied (negatve) with the 2nd (positive) having a small body & range and is usually located in the lower half of the body of the previous stick.
A more dependable reversal tell is what I call the Harami-Hammer. These have long lower shadows on either or both candles:
1st - a wide ranging long bodied down stick, followed by a 2nd wide ranging stick that has closed positive and has it's body contained within the previous stick.
The lower shadows or tails tell you that prices have been seeking a bottom. Factor increased volume into this pattern and you have even more confirmation...
(or-at-least-a-pause in the current direction)
It is relatively common and a fairly dependable pattern. It is described by a candlestick pair where the 1st stick is long bodied (negatve) with the 2nd (positive) having a small body & range and is usually located in the lower half of the body of the previous stick.
A more dependable reversal tell is what I call the Harami-Hammer. These have long lower shadows on either or both candles:
1st - a wide ranging long bodied down stick, followed by a 2nd wide ranging stick that has closed positive and has it's body contained within the previous stick.
The lower shadows or tails tell you that prices have been seeking a bottom. Factor increased volume into this pattern and you have even more confirmation...
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