Candlesticks Piercing Pattern
A Harami Candlestick formation can be bullish or bearish. When a Trend is moving in a particular direction a small opposing candlestick occurs within the previous trend candlestick.
************ This is a reversal pattern that has high reliability. **************
Characteristics
1. The upper shadow should be at least two times the length of the real body.
2. The real body is at the upper end of the trading range. The color of the body is not important although a Red body should have slightly more bearish implications.
3. There should be no upper shadow or very small upper shadow.
4. The longer the lower shadow, the higher the potential of a trend reversal occurring.
Trading Psychology
1.It is a sign of trend indecisiveness and a weakness to the strength of a trend signaling a possible trend reversal.
2. At a certain level there was no more buyers indicating the perception that this was no longer an attractive price. Sellers did not enter aggressively enter showing haste and uncertainty.
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