Bullish Harami
Bullish Harami is a technical analysis term used to describe a chart pattern in which a large candlestick is followed by a smaller candlestick, with the smaller candlestick’s open being higher than the larger candlestick’s close. This pattern is considered to be a sign of a potential reversal in the trend of the security being analyzed. The pattern is considered to be bullish because it suggests that the security may be about to move higher.
History of Bullish Harami
The Bullish Harami pattern was first described by Japanese rice trader Homma Munehisa in the 1700s. Homma was a successful trader who developed a system of candlestick charting that is still used today. He believed that the patterns formed by the candlesticks could be used to predict future price movements. The Bullish Harami pattern is one of the most commonly used patterns in technical analysis today.
Comparison Table
| Pattern | Description |
|---|---|
| Bullish Harami | A large candlestick followed by a smaller candlestick, with the smaller candlestick’s open being higher than the larger candlestick’s close. |
| Bearish Harami | A large candlestick followed by a smaller candlestick, with the smaller candlestick’s close being lower than the larger candlestick’s open. |
Summary
The Bullish Harami is a technical analysis pattern that suggests a potential reversal in the trend of the security being analyzed. It is considered to be a bullish pattern because it suggests that the security may be about to move higher. For more information about this term, you can visit Investopedia, Investing.com, and other financial websites.
See Also
- Bearish Harami
- Doji
- Engulfing Pattern
- Hammer
- Hanging Man
- Inverted Hammer
- Marubozu
- Spinning Top
- Tweezer Tops
- Tweezer Bottoms
