The Bearish Harami is the inverse of the bullish version, appearing after an upswing.
Here a small candle forms completely inside the prior bullish bar, hinting that upward momentum is stalling.
The strategy sells short when that inside candle closes, betting on a reversal as buyers lose conviction.
A percent stop above the pattern high caps the risk and the trade exits if price breaks to new highs.
- Entry Criteria: pattern match
- Long/Short: Both
- Exit Criteria: stop-loss or opposite signal
- Stops: Yes, percent based
- Default Values:
- CandleType = 15 minute
- StopLoss = 2%
- Filters:
- Category: Pattern
- Direction: Both
- Indicators: Candlestick
- Stops: Yes
- Complexity: Intermediate
- Timeframe: Intraday
- Seasonality: No
- Neural networks: No
- Divergence: No
- Risk level: Medium