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  1. 4,558 Posts.
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    Technically correct, it wasn't an inside day by .002.
    However, the bullish harami's importance lies in what it signals, rather then what it's exact apperance is. Thus it has many variations in it's appearance, compared to some other candle formations, that require perfect formation to be valid, etc.

    Low volume price drop followed by low volume bullish haramy, often means that sellers are prepered to let buyers push price higher. Only to renew selling effort later on. Low volumes signal buyers aren't serious, just cautiosly testing water.

    However, massive volume drops signal that buyers aren't gonne, but require massive effort to push past on every resistance point.
    Followed by high volume haramy, which signals that bulls were able to push back but sellers fought back.

    In this case it suggests that agressive selling effort is losing it's steam and bulls are regaining control.

    Keep in mind that high volumes it took to push the price down, mean that bulls don't accept SP valuation.

    Again completely different to rapid fall in SP and huge volumes way down. Followed by bullish harami. Which often means just short consolidation, followed by renewed selling pressure.

    That's my observations on bullish harami signal, anyway. Crosses and pluses also.
    It's worth to look at the large picture to get the best out of signals.

    Cheers
 
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