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Bearish Harami Candlestick Pattern
A bearish harami is a two-candlestick pattern used in technical analysis that signals a potential reversal from an uptrend to a downtrend. The word “harami” comes from the Japanese word for “pregnant,” as the second candle in the pattern is smaller and fits inside the previous larger candle, resembling a pregnant figure. How Bearish Harami Candlestick Pattern Works: The bearish harami pattern suggests that the buying momentum is weakening, and sellers may be stepping in. While it does not guarantee an immediate reversal, it signals indecision and the possibility of a shift in market sentiment. Traders often use this pattern as an early sign that the uptrend could be coming…
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What Is a Candlestick Chart?
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Bullish Harami Candlestick Pattern
A bullish harami is a two-candlestick pattern used in technical analysis that signals a potential reversal from a downtrend to an uptrend. It is considered a bullish reversal pattern and often appears after a period of price decline. How the bullish harami candlestick pattern works: Psychology behind the bullish harami Candlestick pattern The psychology behind the bullish harami pattern reflects a potential shift in market sentiment from bearish to bullish, indicating that the sellers may be losing control while buyers are starting to gain confidence. Here’s a breakdown of the psychology behind each component of the pattern: 1. The First Candle (Bearish): 2. The Second Candle (Bullish): 3. Reversal Expectation:…
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What Is a Candlestick Chart?