Sunday, January 12, 2014

HARAMI



 
BULLISH HARAMI: a down body and a small up body that is completely inside the range of the down body (looks like a pregnant woman), a prevailing downtrend, the first candlestick is a normal or long down candlestick, heavy selling, the next candlestick opens higher or at the close of the former one, signaling a trend reversal since the second candlestick is small, that the bearish power is diminishing, prices must cross above the last close for confirmation.

BEARISH HARAMI: an up body and a small down body that is completely inside the range of the up body (looks like a pregnant woman), a prevailing uptrend, the first candlestick is a normal or a long up candlestick, heavy buying, the next candlestick opens lower or at the close of the former one, The confirmation level is defined as the last close or the midpoint of the first white body, whichever is lower. Prices must cross the last close for confirmation. 

BULLISH HARAMI CROSS: looks like a pregnant woman, the baby is a Doji,  a down candlestick followed by a Doji that is completely inside the range of the prior down body, the body of the first candlestick may be short, a bearish mood prevails in the market, a downtrend is in progress. If the first down body is short, the confirmation level is the body top of the first candlestick. If the first down body is not short, the confirmation level will the last close or the midpoint of the down body of the first candlestick. Prices must cross above these levels for confirmation.

BEARISH HARAMI CROSS: looks like a pregnant woman, the baby is a Doji, an up body followed by a Doji that is completely inside the range of the prior up body, the body of the first candlestick may be short, a bullish mood prevails in the market, an uptrend is in progress. If the first up body is short, the confirmation level is the body bottom of the first candlestick. If the first up body is not short, the confirmation level will the last close or the midpoint of the up body of the first candlestick, prices must cross below these levels for confirmation. 

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