Bullish and Bearish Harami Explained -- with David Moadel
hello and welcome to looking at the markets with David Modell today I'm
going to explain the bullish and bearish harami patterns and before I do I just
want to let you know that if you need more help with trading or investing or
if you'd like some help putting together your own investing or trading plan I can
help you with that I do offer coaching and for the coaching you can email me at
David Modell at gmail.com let's get into it this is considered a - candlestick
reversal pattern so let's talk about the bearish harami pattern first if you have
an uptrend candlesticks are generally trending upwards and then you get a two
candle pattern at the top of an uptrend you get your larger green or white
candle followed by let's say it closes here and then followed by a gap down
with a smaller red or black candle all right and then that red or black candle
is generally the body is generally contained within the larger preceding
green or white candle all right so this body is generally inside of this body
kind of like it's almost like the reverse of an engulfing pattern where
the second candle is larger than the first one well in this case the second
candle is smaller than the first one in this two candle pattern and that's
considered a reversal pattern now this does not work 100% of the time nothing
I'm telling you today or ever works a hundred percent of the time as far as
chart patterns and indicators goes or I just want to let you know these are not
perfect alright so please be aware of that and
make your own decisions and use other indicators along with this if you need
to all right but often times this could be a reversal because it is showing
indecision on the part of the end of the markets the traders and investors you
know you had a strong uptrend but this is showing that they're not so so clear
and so certain about that uptrend and that bullish activity any longer and it
could signal a coming reversal and downtrend and I'll show you an example
of that and here it is okay there it is up up and away
but then it bearish harami and down down down okay
so let's take a look at the opposite which is the bullish harami and that is
another reversal pattern but it's the opposite so at the end of a downtrend
okay then you get a larger red or black candle followed by a it closes here you
got a gap up and then a smaller green or white candle generally the smaller green
or white candle is contained within the larger preceding red or black candle and
again not 100% of the time but sometimes it could be followed by an uptrend all
right and here's an example of what that might look like
there it is downtrend down down down and then bullish harami pattern and up okay
and again it's showing indecision as far as the bearish price action it shows
that the the bearish price action the the shorting and the selling has been
exhausted possibly and it's giving way to some indecision prior to an uptrend
alright it's a pretty simple concept how strong is it by itself well again I
recommend using these patterns with other indicators for conformation for
example here you've got not only the the bullish harami but also breaking out of
a range here alright breaking through resistance and so that's an even
stronger possible sign and if you use this with other indicators such as RSI
MACD stochastic so on and so forth and I have plenty of videos on technical
indicators in fact below this video in the description I will put a link so you
can go to my technical indicator playlist with many many videos on
technical indicators so that's the bullish and bearish harami stock chart
patterns I hope this was helpful to you if it is then please give this a thumbs
up on youtube to let me know that you appreciate what i'm doing and you want
to see more of these i also leave a comment have you seen this pattern have
you used it has it been successful for you or not so much let me know
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the coaching you can email me for that at David Modell at gmail.com thank you
so much I really appreciate it I'll talk to you again soon
it's up to me
and try Kimmy
Jameel