Harami Cross

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DEFINITION of 'Harami Cross'

A trend indicated by a large candlestick followed by a doji that is located within the top and bottom of the candlestick's body. This indicates that the previous trend is about to reverse.

Harami Cross

INVESTOPEDIA EXPLAINS 'Harami Cross'

A Harami cross can be either bullish or bearish, depending on the previous trend. The appearance of a Harami Cross, rather than a smaller body, increases the likelihood that the trend will reverse.

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RELATED FAQS
  1. How are Harami Cross patterns interpreted by analysts and traders?

    The harami cross is a common candlestick reversal pattern consisting of two candles, with the second nesting within the range ... Read Full Answer >>
  2. How effective is creating trade entries after spotting a Harami Cross pattern?

    Because this pattern is relatively common, entering a trade following a harami cross can have mixed results. The harami cross ... Read Full Answer >>
  3. How do I build a profitable strategy when spotting a Harami Cross pattern?

    A number of actors must be taken into account when forming a trading strategy based on the harami cross pattern. Because ... Read Full Answer >>
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