Bullish Harami candlesticks - Complete Trading Analysis

 

BULLISH HARAMI CANDLESTICK PATTERN ANALYSIS

Hello friends welcome to tradersgrip. Today I will share in detail about the Bullish Harami candle. Do you know Bullish harami pattern meaning ?

 The name of this candlestick is made up of two words. Bullish and Harami.The word bullish means Uptrend . Harami is a Japanese word meaning pregnant woman. This is a medium reliable bullish candlesticks pattern. But if momentum of market is good then it gives very strong signal to trade . 

After formation of harami candlestick  bearishness in the market is over and the uptrend is about to begin.

Bullish harami Pattern

The smaller the second candle, the better this pattern will work.

* The Bullish Harami candlesticks pattern consists of two candles. The first candle is long Bearish. It is of red colour.

* The second candle is a small bullish candle. It is of green colour.

* The second candle should be in the middle of the body of the first candle. ie. The second candle should be between the open and close prices of the first candle.  So , The high of the first candle is called the high of this pattern.

Also Read Most Important Pattern * Bullish harami cross * Bearish harami pattern * Bearish harami cross * Bullish engulfing pattern

 

Where is Bullish harami pattern  formed ?

Formation of Bullish Harami

* It is always formed after a long downtrend  in the chart. It is formed at the Bottom of the chart. After the formation of this pattern, the possibility of bearishness in the market ends. Buying after getting the confirmation will definitely be beneficial.

* It forms easily  in every type of market  such as Indian stock market, commodity market, foreign market etc.

* It appears in intraday charts, daily charts, weekly charts and monthly charts. In these  charts  it works very well.

Where to use Bullish harami ?

* If you are trading in intraday then watch it in 5 minute and 15 minute time frame.

* If you do positional trading then see it in daily chart and monthly chart.

How do you trade bullish Harami pattern?

How to use Bullish Harami

* Suppose this pattern is formed in the chart. If the new candle is opened gap-up from this pattern then you have to buy in the market.

* Buy only if the new candle closes above the high of this pattern. This is very necessary.

* The stop-loss is to be placed below the low price of this pattern.

* In this pattern volume of  second green  candle must be more than that of first red candle. only then this pattern do well . volume of new candle should be more than both  candles of this  pattern.

Let us understand this in the Trading chart.

Bullish harami Chart Analysis

* The Bullish Harami pattern in this chart is formed after a long downtrend and the volume of the second candle is more than that of the first candle of this pattern.

* Buy when the new candle closes above the high of this pattern.

* The second number new candle in this chart has closed above this pattern. This is the right time to trade.

* Put a stop-loss at the bottom of this pattern.

When to book profit?

* Until a trend changing signal is received.

Important Point

* In Bullish Harami  the second candle should be lie completely in the body of the first candle.

* First Candle may be bearish  Maruboju.

* After the formation of this pattern, one should not buy until the market price crosses its high.

* The smaller the second candle, the better this pattern will work.

* In this pattern volume of  green candle must be more than that of first candle. only then this pattern work perfectly . volume of new candle should be more than both  candles of this  pattern.

 

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