Serious Technical & Fundamental discussion only, page-359

Hi Mr Pig,

The Bullish Harami is a two-line candlestick pattern in which the red/black candle's body of the first candlestick engulfs the green/white candle's body of the second candle. The second candle sits within the body of the first. The word harami comes from an old Japanese word meaning 'pregnant'. Think of it like the SP is about to give birth to something- good.

The pattern appears in a downtrend and forecasts its reversal. The Bullish Harami pattern needs confirmation on the subsequent candles or trading pattern which we predictably got.

On 28/07/2021 the green candle was completely engulfed by the red candle of the previous day, and this coming at the end of both a short term and longer term downtrend. It took a day or two for the reversal to kick in.

Usually the Harami signals a longer term reversal- but just occasionally the reversal lasts for a shorter term. Harami's are usually reliable patterns. I often enter a stock on a Harami or shortly thereafter and on balance am way ahead over the years.

As i stated, not sure how long this reversal will last and am ready to exit if it wobbles too much. Having said that it could signify a much longer term change in the recent trend. There are gaps that still never got closed off from last year that play on my mind but there have been some micro-rallies along the way that could have pushed the SP away from those prices. It is not an absolute that the gap will get closed but I hold that concept in orbit when making trading decisions.

Cheers