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www.YourTradingCoach.com – Candlestick Charting – Vol 10 – The Harami
Video Rating: 4 / 5

14 thoughts on “Candlesticks – Vol 10 – Harami

  1. YourTradingCoach says:

    Hi faYte0607,
    No. These are not Harami. These videos demonstrate reversal patterns. As such, price must be moving directionally prior to the pattern. ie. a bullish harami occurs at the bottom of a downward move. A bearish harami occurs at the top of an upwards move. In the examples you’ve suggested,? price is contained within a narrow range sideways congestion. Any patterns within such an environment are invalid. Context is essential in using patterns.

    Cheers Lance.

  2. faYte0607 says:

    Hi Lance,

    Just wondering, @5:55, can the 4th and 5th candle be a Harami? as well since the 5th candle’s real body is inside 4th candle’s real body? Also the 6th & 7th pair as well as the last 4th & 5th pair.

    If so, then it’s really uncertain which direction the stock will go even with a confirmation, just a game of probability.

  3. YourTradingCoach says:

    Hi 89myacc,
    Correct. The harami definition requires the real body of the 2nd candle to be within the real body of the 1st. If the shadow extends beyond the real body, it still meets the definition. Be sure to consider the psych of the pattern though – every pattern is unique. If the shadow has broken the real body, what will that mean in that case? See my Advanced Candlestick Trading articles? on my website for more.

  4. 89myacc says:

    Hi I just wanted to ask if the shadow of the second candle is not contained within the body? of the first would that count as a harami?

  5. YourTradingCoach says:

    Hi TheDjbang,

    Generally this is considered more powerful. Of course, the even more important information? is in considering the context of the pattern – where is it occurring within the market structure.


  6. TheDjbang says:

    Hi Lance,

    Do you think that when the second candle in the pattern is the opposite colour to the trend candle that the signal is? more powerful than when the two candles in the pattern are the same colour?

  7. YourTradingCoach says:

    Hi luckyload3r,

    Great comment. Thanks. Risk Management is an essential? part of all trading, whether using these candlestick patterns or any other entry technique.

    Happy trading,

  8. luckyload3r says:

    plus let’s not forget? that tight stops would prevent any serious loss

  9. YourTradingCoach says:

    Hi viketermore,
    It could well be a valid setup. Certainly it meets the textbook definition, but then we don’t trade textbooks. You need to check the context of where this? pattern is occurring within the bigger picture. If it’s rallied up into resistance and given this signal, then go short. If it’s broken to an uptrend then the higher odds trade is waiting for a bullish pattern. If it was a valid pattern, then certainly it led to a loss – that happens.

  10. viktermore says:

    I have a question YourTradingCoach regarding last chart in this video.
    can the candle that is counted as number 5 from the end of chart be considered as shooting star
    that got confirmed by next candle closing? down?
    if i would then enter short based on shooting start i would end up in loss because of sharp move of last green candle above shooting start.

  11. YourTradingCoach says:

    Thanks affectedstudent,
    Glad you liked the? video

  12. affectedstudent says:

    Candle Lightens my heart? & trade ! Thanks Lance

  13. YourTradingCoach says:

    You’re? welcome Ortmoon,

    Happy trading,

  14. Ortmoon says:

    Thanks? once again ; -)

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