************ This is a reversal pattern that has high reliability. **************

Bullish Reversal Pattern
After a Harami a another green candlestick appears confirming the trend reversal.

 

Characteristics

After a downward trend a harami appears within the body of the previous red candlestick. It is followed by another green candlestick.

 

Confirmation
Another green candlestick appearing within the body of the previous candlestick is good.

 

If the next green candlestick appears at or above the 50 percent mark this is even better.

 

If the next green body candlestick begins above the last this is a great sign that trend reversal is in play.

 

 

1. This candlestick formation shows a definite change in seller sentiment. If you are short you may want to exit.

 

2. You must be careful that you are not tricked into entering a bad stock thinking it may go up. If feelings are that this stock is negative on the day you may want to stay away because this could just be a short squeeze.