Bullish 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 a downtrend. After a large bearish 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 bottom, it serves as an upward reversal signal.
After confirming the harami cross (second doji closes), enter long when the next candle closes as a bullish candle. Or enter when price exceeds the first large bearish candle's open.
Project 1-1.5 times the first bearish candle's range (open to close) upward from the entry point. Or target the nearest resistance line.
Place a stop-loss below the second doji's low, or slightly below the first large bearish candle's close.
Ideally, high volume on the first large bearish candle and decreasing volume on the second doji. Volume increase on the confirmation candle enhances reliability.