Harami Cross

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

BREAKING DOWN '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 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 >>
  3. 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 >>
  4. What is Fibonacci retracement, and where do the ratios that are used come from?

    Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >>
  5. What are some of the most common technical indicators that back up Doji patterns?

    The doji candlestick is important enough that Steve Nison devotes an entire chapter to it in his definitive work on candlestick ... Read Full Answer >>
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