The Harami pattern is found on the Japanese candlestick chart. Her name in Japanese means pregnant woman. It has the shape of two consecutive candles, one large and the second small. The pattern indicates the possibility of a change in a trend.
The Harami pattern, as I already mentioned, consists of a pair of candles. It usually proclaims that the current trend is coming to an end.
The first Harami candle is long and is colored green in the case of an uptrend, and in red in the case of a downtrend.
The second Harami candle is short and opposite in color to the first. This means it will be a short reddish candle when there is an uptrend and a short bullish candle when there is a downtrend.
Reading the Harami pattern
In a continuous trend, candles are the same color. When there is a long candle, the trend is strong. But whenever a candle of a different color appears, it can be a sign of a change in trend. In the Harami pattern, this candle of the opposite color is significantly shorter than the previous one. In addition, it usually unfolds within the body of what was previously done. Whenever you notice Harami candles, trend reversal is very likely. The other choice is the inevitable price correction before the market continues in the previous direction.
Trading with the Harami pattern on the Quotex platform
Because of uncertainty, if Harami candles represent trend reversal or price correction, it is better to use the described pattern for long term trading. In the example chart above, the time period chosen is 1 day. The most reasonable time to enter the position is the development of the third green candle. This candle clearly shows that the trend will go up. The trading range must be 1 day.
Now you have the necessary knowledge about the Harami pattern, so it's time to put it into practice. Try it out on Quotex's free demo account before you get real. Just be extremely careful with your trades as there is no risk free strategy and you will likely suffer losses along the way. Always be prepared to deal with things that are not going according to plan.
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