Bullish Harami Pattern
BULLISH HARAMI PATTERN (BHP)
strong signal of disparity about the market’s health
1. Market is on a downtrend;
2. Then there is a long black candlestick;
3. What follows is a Doji completely engulfed by the real body of Day 1. It is preferred that the Doji’s shadows are contained within the body of Day 1.
The BHP is a strong signal of disparity about the market’s health. During a downtrend, there is heavy selling. It is followed by a Doji the next day. This indicates that the market is starting to reverse the current downtrend course of the market.
1. This is not a major reversal pattern
2. A confirmation of the reversal is suggested to ensure that the downtrend has reversed (through a white stick, a large gap up or a higher close).