Bearish Harami Cross Pattern
The Bearish Harami Cross is a candlestick pattern that signals a potential reversal from a bullish trend to a bearish trend. It is similar to the Bearish Harami pattern but involves a Doji instead of a small bearish candle as the second candle, making it a stronger indicator of indecision and potential reversal.
Characteristics of the Bearish Harami Cross Pattern:
- First Candle: A long bullish (green or white) candle that forms during an uptrend.
- Second Candle: A Doji candle (where the open and close prices are almost the same), which fits entirely within the body of the first bullish candle.
- Signal: The appearance of the Doji indicates market indecision, suggesting that the upward momentum is weakening and a reversal to a bearish trend might occur.
The Bearish Harami Cross is considered a stronger signal of a trend reversal compared to the standard Bearish Harami pattern due to the presence of the Doji, which reflects a greater level of uncertainty in the market.
Identifying the Bearish Harami Cross Pattern
To analyze and identify the Bearish Harami Cross pattern, follow these steps:
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Load the Chart for the Asset:
- Open the platform.
- Load the chart for the specific asset or instrument you want to analyze.
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Set the Timeframe:
- Choose an appropriate timeframe that fits your analysis needs. Daily or longer intervals are recommended for spotting reliable candlestick patterns like the Bearish Harami Cross.
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Select Candlestick Chart:
- Ensure that the chart type is set to “Candlestick” to visualize the patterns clearly.
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Use the Pattern Recognition Tool:
- Click on the FX Study section on the platform.
- Navigate to the Candlestick Pattern menu.
- Select the Bearish Harami Cross Pattern from the list of available candlestick patterns.
- The platform will automatically highlight all instances of the Bearish Harami Cross on your chart, making it easier to spot potential trend reversals.
