Bearish Harami Cross
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A two-candlestick pattern appearing during an uptrend. After a large bullish candle, a doji (open and close approximately equal) appears within its body. This is an enhanced version of the regular harami, where the doji as the second candle suggests stronger indecision and a higher probability of reversal. When appearing at the top, it serves as a downward reversal signal.
After confirming the harami cross (second doji closes), enter short when the next candle closes as a bearish candle. Or enter when price drops below the first large bullish candle's open.
Project 1-1.5 times the first bullish candle's range (close to open) downward from the entry point. Or target the nearest support line.
Place a stop-loss above the second doji's high, or slightly above the first large bullish candle's close.
Ideally, high volume on the first large bullish candle and decreasing volume on the second doji. Volume increase on the confirmation candle enhances reliability.