• Loading stock data...
What is a Bullish Harami? - WebTradeTalk Community
Friday, May 27, 2022
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • Login
WebTradeTalk Community
DigitalOcean Referral Badge
  • Home
  • Finance
    Why You (and I) Should Name a ‘Trusted Contact’

    Why You (and I) Should Name a ‘Trusted Contact’

    5 Things to Know About Truist Credit Cards

    5 Things to Know About Truist Credit Cards

    How to Sell Your Car Online

    How to Sell Your Car Online

    How to Book the Star Wars Hotel With Points

    How to Book the Star Wars Hotel With Points

    Lightspeed Restaurant Review 2021: Pricing, Features, Alternatives

    Charles Schwab vs. Robinhood: 2022 Comparison

    Is an Airbnb or a Hotel Right for Your Next Trip?

    Is an Airbnb or a Hotel Right for Your Next Trip?

    How to Insure Your Money When You’re Banking Over $250K

    How to Insure Your Money When You’re Banking Over $250K

    How Does AutoSlash Work? – webtradetalk.com

    How Does AutoSlash Work? – webtradetalk.com

    Smart Money Podcast: COVID Tests, and Reversing a Credit Score Drop

    Smart Money Podcast: The Tax Episode

  • Investing
    Best Stocks Under $5 That Pay Dividends

    Best Stocks Under $5 That Pay Dividends

    10 Best Oil Stocks to Buy Now

    10 Best Oil Stocks to Buy Now

    Best Platforms to Invest in Art

    Best Platforms to Invest in Art

    Hot Cash Stocks for 2022

    Hot Cash Stocks for 2022

    What is the DAX Stock Index?

    What is the DAX Stock Index?

    10 Smart Things To Do With Your Tax Refund

    10 Smart Things To Do With Your Tax Refund

    How to Spot a Crypto Scam (In-Depth Guide)

    How to Spot a Crypto Scam (In-Depth Guide)

    Why You Should Probably Keep Your Distance

    Why You Should Probably Keep Your Distance

    5 Factors To Look For When Investing In An NFT Project

    5 Factors To Look For When Investing In An NFT Project

  • Stock
  • Forex Trading
    Sterling slips in Brexit countdown, Aussie rallies By Reuters

    Forex – Dollar Slides After 4-month High; Aussie Firmer On RBA’s Optimism By Investing.com

    Argentina Peso Tumbles on Bid to Tap $50 Billion IMF Line Faster By Bloomberg

    Argentina Tested as Peso Selloff Prompts Third Abrupt Increase By Bloomberg

    Dollar Drifts Lower as Treasury Yields Retreat By Investing.com

    Dollar Hits Fresh 4-Month High After Mixed Jobs Report By Investing.com

    Dollar Flat After Fed; Aussie Dollar Falls on Weak China PPI Data By Investing.com

    Dollar Eases From 2018 Highs as Wage Growth Woes ‘Puzzle’ Traders By Investing.com

    Virus worries buoy dollar, pound swung by Brexit gyrations By Reuters

    Forex – Weekly Outlook: May 7

    Dollar index at near four-month high after U.S. jobs data By Reuters

    Taiwan probes foreign banks over grain firms’ arbitrage By Reuters

    Forex – Dollar Steady at 4-month High; Aussie Up On Business Confidence By Investing.com

    Dollar Holds Near 4-Month High in 4th Week of Gains By Investing.com

    EUR/USD Weakness Limits Dollar’s Retreat From Highs By Investing.com

    EUR/USD Weakness Limits Dollar’s Retreat From Highs By Investing.com

  • Crypto
    Terra (LUNA) Outperforms Popular Cryptos Ether, Dogecoin In The Past 24 Hours

    Terra (LUNA) Outperforms Popular Cryptos Ether, Dogecoin In The Past 24 Hours

    Proof-of-Work Ban Removed From Europe’s Proposed Crypto Regulation – Regulation Bitcoin News

    Proof-of-Work Ban Removed From Europe’s Proposed Crypto Regulation – Regulation Bitcoin News

    GameFi – Play Hard, Earn Hard

    GameFi – Play Hard, Earn Hard

    Square Enix to Bring Dungeon Siege IP to The Sandbox – Metaverse Bitcoin News

    Square Enix to Bring Dungeon Siege IP to The Sandbox – Metaverse Bitcoin News

    Crypto Market Rebounds As Tech firms Boycott Russia

    Crypto Market Rebounds As Tech firms Boycott Russia

    South African Crypto Exchange Valr Raises $50 Million in Series B Funding Round – Exchanges Bitcoin News

    South African Crypto Exchange Valr Raises $50 Million in Series B Funding Round – Exchanges Bitcoin News

    How 4DOT is making DeFi Accessible to Crypto Investors

    How 4DOT is making DeFi Accessible to Crypto Investors

    Technical Analysis:  Fantom Climbs Close to 10% Higher, While THETA Drops on Wednesday – Market Updates Bitcoin News

    Technical Analysis:  Fantom Climbs Close to 10% Higher, While THETA Drops on Wednesday – Market Updates Bitcoin News

    US Senator Urges Regulators to Increase Scrutiny on Crypto as It Risks Undermining Sanctions Against Russia – Bitcoin News

    US Senator Urges Regulators to Increase Scrutiny on Crypto as It Risks Undermining Sanctions Against Russia – Bitcoin News

  • Donate
No Result
View All Result
  • Home
  • Finance
    Why You (and I) Should Name a ‘Trusted Contact’

    Why You (and I) Should Name a ‘Trusted Contact’

    5 Things to Know About Truist Credit Cards

    5 Things to Know About Truist Credit Cards

    How to Sell Your Car Online

    How to Sell Your Car Online

    How to Book the Star Wars Hotel With Points

    How to Book the Star Wars Hotel With Points

    Lightspeed Restaurant Review 2021: Pricing, Features, Alternatives

    Charles Schwab vs. Robinhood: 2022 Comparison

    Is an Airbnb or a Hotel Right for Your Next Trip?

    Is an Airbnb or a Hotel Right for Your Next Trip?

    How to Insure Your Money When You’re Banking Over $250K

    How to Insure Your Money When You’re Banking Over $250K

    How Does AutoSlash Work? – webtradetalk.com

    How Does AutoSlash Work? – webtradetalk.com

    Smart Money Podcast: COVID Tests, and Reversing a Credit Score Drop

    Smart Money Podcast: The Tax Episode

  • Investing
    Best Stocks Under $5 That Pay Dividends

    Best Stocks Under $5 That Pay Dividends

    10 Best Oil Stocks to Buy Now

    10 Best Oil Stocks to Buy Now

    Best Platforms to Invest in Art

    Best Platforms to Invest in Art

    Hot Cash Stocks for 2022

    Hot Cash Stocks for 2022

    What is the DAX Stock Index?

    What is the DAX Stock Index?

    10 Smart Things To Do With Your Tax Refund

    10 Smart Things To Do With Your Tax Refund

    How to Spot a Crypto Scam (In-Depth Guide)

    How to Spot a Crypto Scam (In-Depth Guide)

    Why You Should Probably Keep Your Distance

    Why You Should Probably Keep Your Distance

    5 Factors To Look For When Investing In An NFT Project

    5 Factors To Look For When Investing In An NFT Project

  • Stock
  • Forex Trading
    Sterling slips in Brexit countdown, Aussie rallies By Reuters

    Forex – Dollar Slides After 4-month High; Aussie Firmer On RBA’s Optimism By Investing.com

    Argentina Peso Tumbles on Bid to Tap $50 Billion IMF Line Faster By Bloomberg

    Argentina Tested as Peso Selloff Prompts Third Abrupt Increase By Bloomberg

    Dollar Drifts Lower as Treasury Yields Retreat By Investing.com

    Dollar Hits Fresh 4-Month High After Mixed Jobs Report By Investing.com

    Dollar Flat After Fed; Aussie Dollar Falls on Weak China PPI Data By Investing.com

    Dollar Eases From 2018 Highs as Wage Growth Woes ‘Puzzle’ Traders By Investing.com

    Virus worries buoy dollar, pound swung by Brexit gyrations By Reuters

    Forex – Weekly Outlook: May 7

    Dollar index at near four-month high after U.S. jobs data By Reuters

    Taiwan probes foreign banks over grain firms’ arbitrage By Reuters

    Forex – Dollar Steady at 4-month High; Aussie Up On Business Confidence By Investing.com

    Dollar Holds Near 4-Month High in 4th Week of Gains By Investing.com

    EUR/USD Weakness Limits Dollar’s Retreat From Highs By Investing.com

    EUR/USD Weakness Limits Dollar’s Retreat From Highs By Investing.com

  • Crypto
    Terra (LUNA) Outperforms Popular Cryptos Ether, Dogecoin In The Past 24 Hours

    Terra (LUNA) Outperforms Popular Cryptos Ether, Dogecoin In The Past 24 Hours

    Proof-of-Work Ban Removed From Europe’s Proposed Crypto Regulation – Regulation Bitcoin News

    Proof-of-Work Ban Removed From Europe’s Proposed Crypto Regulation – Regulation Bitcoin News

    GameFi – Play Hard, Earn Hard

    GameFi – Play Hard, Earn Hard

    Square Enix to Bring Dungeon Siege IP to The Sandbox – Metaverse Bitcoin News

    Square Enix to Bring Dungeon Siege IP to The Sandbox – Metaverse Bitcoin News

    Crypto Market Rebounds As Tech firms Boycott Russia

    Crypto Market Rebounds As Tech firms Boycott Russia

    South African Crypto Exchange Valr Raises $50 Million in Series B Funding Round – Exchanges Bitcoin News

    South African Crypto Exchange Valr Raises $50 Million in Series B Funding Round – Exchanges Bitcoin News

    How 4DOT is making DeFi Accessible to Crypto Investors

    How 4DOT is making DeFi Accessible to Crypto Investors

    Technical Analysis:  Fantom Climbs Close to 10% Higher, While THETA Drops on Wednesday – Market Updates Bitcoin News

    Technical Analysis:  Fantom Climbs Close to 10% Higher, While THETA Drops on Wednesday – Market Updates Bitcoin News

    US Senator Urges Regulators to Increase Scrutiny on Crypto as It Risks Undermining Sanctions Against Russia – Bitcoin News

    US Senator Urges Regulators to Increase Scrutiny on Crypto as It Risks Undermining Sanctions Against Russia – Bitcoin News

  • Donate
No Result
View All Result
WebTradeTalk Community
No Result
View All Result
Home Investing

What is a Bullish Harami?

Newsroom by Newsroom
February 11, 2022
in Investing
0
What is a Bullish Harami?
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

As technical patterns culminate in a breakout, traders look for signals as to which direction the stock price might head. This is especially important in reversal patterns. Signals like a bullish harami let traders know that the momentum of the price trend is slowing. It also lets them know that a reversal is soon to occur. 

A bullish harami is one of several bullish reversal patterns. It forms on price downtrend. And, assuming the reversal is true, marks the start of an uptrend in price. It’s a signal traders look for within larger reversal patterns, such as an expanding triangle or a falling wedge. On the surface, a bullish harami might not stand out on a candlestick chart. Yet, it’s an important marker for an impending bullish price change. 

Let’s take a look at the bullish harami as a candlestick pattern. We’ll go over how it forms, what it means and what traders can expect after it manifests.

Identifying a Bullish Harami

For those familiar with a bullish engulfing pattern, a bullish harami mirrors it. Instead of a second bullish candle engulfing the preceding smaller bear candle, it’s the opposite. A harami features a large bearish candle that’s followed by a much smaller bullish candle, contained within the bear candle. To qualify as a harami, the pattern must follow a few criteria:

  • The open of the bullish candle must be above the previous close of the bearish candle.
  • The close of the bullish candle must be below the previous open of the bearish candle.
  • The bullish candlestick must fall within the body of the bearish candlestick.
  • The length of the “tails” doesn’t matter; only the body matters.

Often, the bullish candle of the pattern will take the form of a doji. It’s a candle with very similar open/close price points. In some cases, the doji might even become a cross, if the open/close prices are equivalent. In Japanese, doji means “mistake,” which is indicative of trader sentiment. Traders aren’t sure how they feel about the price, hence the relativity between open and close, even despite the day’s highs and lows.

The Trading Psychology Behind a Bullish Harami

A harami represents uncertainty. The large black candle represents a strong bearish sentiment in one trading period. However, it’s followed by a distinct, albeit small, bullish push. This signals a struggle between bulls and bears. The bullish response is enough to kickstart a reversal of the price. 

The long black bearish candle means bears have pushed the price of a stock down dramatically over a single trading period. As the price gaps up to open bullish, it shows that bulls believe the price is too low. They’re buying because they believe the stock is now undervalued. Yet, there’s uncertainty about the true value of the stock; hence the doji. 

Ultimately, if a bull can stabilize the price of the stock within the trading period, there’s a chance to create new support and a bullish push upwards. The harami is the point of reversal, representing the culmination of a greater bullish reversal pattern. It’s a buy signal of bulls and a sell signal for bears. 

Other Important Factors to Consider

There are several factors that can inform the strength of the impending bullish reversal following a harami. This signal is most relevant following consecutive periods of downward trading. If the price of a stock has traded sideways, pattern traders will need to scrutinize the signal closely to validate it. Here are a couple of indicators in the strength and validity of a bullish harami:

  • The higher the doji within the body of the preceding bearish candle, the more likely bullish sentiment in the trading period to come. Bulls will capitalize on momentum.
  • The higher the upward gapping from the previous close to the current open, the stronger the reversal signal is heading into the first bullish period. 
  • The higher the trading volume on the downtrend, the stronger the reversal signal that comes with the harami. 

It’s always best to zoom out from a harami to look at its context within a larger bearish pattern. If there are clear markers for impending reversal, the sudden reversal in investor sentiment becomes validated within the scope of the pattern. Without this context, there’s always the chance a harami could be false. 

Bullish vs. Bearish Harami Pattern

As the name implies, a bearish harami pattern is the opposite of a bullish one. It forms on a price uptrend and signals a bearish reversal. A bearish harami looks the same, but features a large bullish candlestick that’s followed by a bearish doji. The price is likely to fall following the manifestation of this pattern at the peak of a bullish trend. 

Traders trying to capitalize on a bullish harami will open long positions as the reversal signals uptrend. Conversely, a bearish harami signals an opportunity for shorts to move in. Both types of traders can rely on pattern retracement to set stop-losses and price targets, based on pattern formation. 

Harami is Japanese for “Pregnant”

When it appears on a stock chart, a bullish harami looks a little like a pregnant woman: a body with a baby bump. The name is even more apropos when you think about it like a pregnant pause in the downtrend of a stock’s price. The pattern gives birth to a reversal that sends the price climbing once again. No matter the analogy, a harami is a signal any trader needs to be on the lookout for as they monitor a reversal pattern and look for breakout signals.


Source link

Tags: BullishHarami
Previous Post

Changes Abound for the Marriott Boundless Credit Card

Next Post

Dollar Holds Steady, Yen Remains Supported By Investing.com

Newsroom

Newsroom

Related Posts

Best Stocks Under $5 That Pay Dividends
Investing

Best Stocks Under $5 That Pay Dividends

by Newsroom
March 3, 2022
10 Best Oil Stocks to Buy Now
Investing

10 Best Oil Stocks to Buy Now

by Newsroom
March 3, 2022
Best Platforms to Invest in Art
Investing

Best Platforms to Invest in Art

by Newsroom
March 2, 2022
Hot Cash Stocks for 2022
Investing

Hot Cash Stocks for 2022

by Newsroom
March 2, 2022
What is the DAX Stock Index?
Investing

What is the DAX Stock Index?

by Newsroom
March 2, 2022
Next Post

Dollar Holds Steady, Yen Remains Supported By Investing.com

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Articles

Sterling slips in Brexit countdown, Aussie rallies By Reuters

Forex – Dollar Slides After 4-month High; Aussie Firmer On RBA’s Optimism By Investing.com

March 3, 2022
Why You (and I) Should Name a ‘Trusted Contact’

Why You (and I) Should Name a ‘Trusted Contact’

March 3, 2022
Terra (LUNA) Outperforms Popular Cryptos Ether, Dogecoin In The Past 24 Hours

Terra (LUNA) Outperforms Popular Cryptos Ether, Dogecoin In The Past 24 Hours

March 3, 2022

Browse by Category

  • Crypto
  • Finance
  • Forex Trading
  • Investing
  • Stock

About us

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Personal Finance, Stock, Investing, Crypto, and more.

Categories

  • Crypto
  • Finance
  • Forex Trading
  • Investing
  • Stock

Recent Posts

  • Forex – Dollar Slides After 4-month High; Aussie Firmer On RBA’s Optimism By Investing.com
  • Why You (and I) Should Name a ‘Trusted Contact’
  • Terra (LUNA) Outperforms Popular Cryptos Ether, Dogecoin In The Past 24 Hours
  • Contact
  • Privacy Policy
  • Terms & Conditions

© 2021 webtradetalk.com - All rights reserved

No Result
View All Result
  • Home
  • Finance
  • Investing
  • Stock
  • Forex Trading
  • Crypto
  • Donate

© 2021 webtradetalk.com - All rights reserved

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
  • bitcoinBitcoin(BTC)$60,736.00-1.05%
  • MMS Cash TokenMMS Cash Token(MCASH)$1.000.00%
  • ethereumEthereum(ETH)$4,240.29-1.27%
  • binancecoinBinance Coin(BNB)$516.85-0.75%
  • tetherTether(USDT)$1.00-0.09%
  • cardanoCardano(ADA)$1.96-0.75%
  • SolanaSolana(SOL)$196.662.08%
  • rippleXRP(XRP)$1.091.42%
  • polkadotPolkadot(DOT)$42.28-1.30%
  • Shiba InuShiba Inu(SHIB)$0.000067-5.05%
  • dogecoinDogecoin(DOGE)$0.261766-4.15%
  • usd-coinUSD Coin(USDC)$1.00-0.08%
  • TerraTerra(LUNA)$42.35-2.09%
  • AvalancheAvalanche(AVAX)$63.120.93%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$60,784.00-0.96%
  • chainlinkChainlink(LINK)$29.46-1.35%
  • Binance USDBinance USD(BUSD)$1.00-0.14%
  • litecoinLitecoin(LTC)$190.63-0.15%
  • UniswapUniswap(UNI)$24.680.07%
  • matic-networkPolygon(MATIC)$1.85-1.97%
  • algorandAlgorand(ALGO)$1.820.55%
  • bitcoin-cashBitcoin Cash(BCH)$593.931.51%
  • cosmosCosmos(ATOM)$36.33-3.38%
  • stellarStellar(XLM)$0.3666102.15%
  • vechainVeChain(VET)$0.130379-1.17%
  • Axie InfinityAxie Infinity(AXS)$137.08-5.29%
  • Internet ComputerInternet Computer(ICP)$45.074.39%
  • daiDai(DAI)$1.00-0.06%
  • filecoinFilecoin(FIL)$63.938.88%
  • tronTRON(TRX)$0.099972-0.89%
  • theta-tokenTheta Network(THETA)$7.12-7.47%
  • ethereum-classicEthereum Classic(ETC)$53.802.21%
  • FTX TokenFTX Token(FTT)$58.46-1.92%
  • FantomFantom(FTM)$2.68-1.66%
  • cETHcETH(CETH)$85.17-1.02%
  • VectoriumVectorium(VECT)$425.81-3.49%
  • HederaHedera(HBAR)$0.401606-3.25%
  • Lido Staked EtherLido Staked Ether(STETH)$4,218.57-0.97%
  • OKBOKB(OKB)$20.58-2.77%
  • tezosTezos(XTZ)$6.26-1.07%
  • ElrondElrond(EGLD)$264.881.10%
  • Crypto.com CoinCrypto.com Coin(CRO)$0.208427-3.29%
  • NearNear(NEAR)$9.86-6.89%
  • The GraphThe Graph(GRT)$0.995.37%
  • moneroMonero(XMR)$268.562.08%
  • eosEOS(EOS)$4.562.83%
  • FlowFlow(FLOW)$13.88-4.08%
  • PancakeSwapPancakeSwap(CAKE)$17.40-3.20%
  • AaveAave(AAVE)$310.80-2.66%
  • KlaytnKlaytn(KLAY)$1.58-1.86%