bullish harami

Hi All,

What we are seeing here at the moment is what is termed a Bullish Harami. This is a Candlestick set up.

The psychology can more or less be described as follows:

A long 1st day with high volume in the existing downtrend brings complacency to the bears. The next day trades in a small range within the previous day's real body. Light volume on the 2nd day should give rise to concern by the bears of an impending change of trend. Look for higher prices over the coming days, especially if the next day provides confirmation of a trend change by closing higher.

This basically a continuation pattern and the reliability of this set up is usually pretty high. We need a higher close on Monday to confirm this.

Cheers
Babylon