The “harami” pattern is made up of a long real body that engulfs the smaller candlestick. This can be associated to a parent with their child. The longer body must occur first, followed by a shorter body. The colors do not need to be opposite, but are usually found in that manner. These patterns warn that the current trend may be slowing down or ready to trade sideways for some time.
The “harami cross” forms when the second candlestick is a doji. Since we have a doji forming, there will be a powerful move. This move depends on what body is formed and will be an indication of what direction will follow. If the body is dark, the move will be bearish. If the body is clear, the move will be bullish. Examples of harami and harami cross patterns are shown below.
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