Bearish Harami Cross Pattern

by · December 31, 2009



BEARISH HARAMI CROSS PATTERN (BHCP)
a major downside reversal pattern

Characteristics:
1. Market is on an uptrend;
2. Day 1 has a long white stick;
3. On Day 2, there is a Doji that is completely engulfed by Day 1’s body.

Brief Explanation:
The BHCP is a Doji preceded by a long white body. It is a major reversal pattern and is more significant than a regular Bearish Harami Pattern. The BHCP is a sign of disparity about the health of the market. The market is bullish and buying continues as shown by the long white body. But we see the Doji, which shows that the market may not continue to be in an uptrend.

Notes:
1. The BHCP is a major downside reversal pattern
2. A confirmation on Day 3 is necessary to be sure that the uptrend has reversed (through a black stick, a large gap down or a lower close).