Improve Your Market Timing: The Bearish Harami Candlestick Pattern
May 22nd, 2010 | 
Author: - The Bearish Harami is a two session candlestick pattern.
- The first session is a long white candle at the top of an uptrend.
- The second candle gaps down from the prior session’s close and trades down forming a dark candle with the close higher than the prior candle’s open.
- Western technical analysts refer to this pattern as an “Inside Day” because the price action of the second session is totally inside of the prior candle.
- This pattern needs confirmation with a bearish follow through candle the next session.
- Large candles bode for a more convincing reversal signal.
- A close toward the bottom of the first candle is also a more compelling pattern.
- Increased volume confirms that profit taking is underway and the bears are in control.
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