Definition
Bullish Harami Cross consists of a long black candle and a Doji. Bullish Harami Cross formation forecasts an upcoming ascending trend, signalling a trend reversal. It is more relevant than the Bullish Harami pattern.
- Trend: Reversal
- Expected trend: Bullish
- Previous trend: Bearish
- Reliability: Moderate
- Type: Bullish
- Number: 2
Recognition
- The market is in a downward trend.
- The first day is a long black candle.
- The black candle is followed by a Doji. Its body is totally covered by the previous candle. The shadows of the Doji are not necessarily covered, but the more is covered, the more certain the forecast.
Interpretation
Bullish Harami Cross reflects uncertainty on the market. After the long black candle, on the next day, the market opens higher than its closing. The narrow trading range forms a Doji. This formation has only medium reliability, it is recommended to wait for a confirmation on the third day.
Important factors
Bullish Harami Cross is more reliable than the Bullish Harami. It is not recommended for short position owners to ignore the Bullish Harami Cross signal. It is recommended (but not necessary) to wait for a confirmation about the trend reversal on the third day. The confirmation could come from a white candle with an upward gap or a higher closing price.
