| Bullish Candlestick Patterns |  | | |
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This Pattern signals a :
Reversal
Reliability of this pattern:
High
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This Pattern signals a : Reveral
Reliability of this candlestick pattern: Low
How to Identify:
Two candles are involved in forming this pattern. On a daily chart, here's how it will unravel:- 1st day is a bears day (black candle) with a large body - the market has been bearish so far.
- 2nd day is bulls day which gaps opposite the trend - with a much smaller body and is completely engulfed by the 1st day's body.
Market Psychology:
This pattern usually occurs at the end of a bearish rally - however, the uptrend gap suddenly upsets the bears who thought they were sitting on a great position the previous day.
Since the reliability of this pattern is low - a strong following bullish day is needed for confirmation.
The opposite of Bullish Harami is Bearish Harami
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