A Piercing Trading engulfing pattern forex occurs when a bullish candle on Day 2 closes above the middle of Day 1’s bearish candle. The rejection of the gap down by the bulls typically can be viewed as a bullish sign, and the fact that bulls were able to press further up into the losses of the previous day adds even more bullish sentiment.
Bulls were successful in holding prices higher, absorbing excess supply and increasing the level of demand. Since the Piercing Pattern means that bulls were unable to completely reverse the losses of Day 1, more bullish movement might be expected before an outright potential buy signal is given. Piercing Pattern because it completely reverses the losses of Day 1 and adds new gains. The information above is for informational and entertainment purposes only and does not constitute trading advice or a solicitation to buy or sell any stock, option, future, commodity, or forex product. Past performance is not necessarily an indication of future performance.
Candlestick Pattern is considered a reversal pattern. Bearish Harami: A bearish Harami occurs when there is a large bullish green candle on Day 1 followed by a smaller bearish or bullish candle on Day 2. The most important aspect of the bearish Harami is that prices gapped down on Day 2 and were unable to move higher back to the close of Day 1. This is a sign that uncertainty could be entering the market. Bullish Harami: A bullish Harami occurs when there is a large bearish red candle on Day 1 followed by a smaller bearish or bullish candle on Day 2. Again, the most important aspect of the bullish Harami is that prices gapped up on Day 2 and price was held up and unable to move lower back to the bearish close of Day 1.
The first Harami pattern shown above on the chart of the E-mini Nasdaq 100 Future is a bullish reversal Harami. First there was a long bearish red candle. Second, the market gapped up at the open. In the case above, Day 2 was a bullish candlestick, which made the bullish Harami look even more bullish. Harami Candlestick Potential Buy Signal A buy signal could be triggered when the day after the bullish Harami occured, price rose higher, closing above the downward resistance trendline. A bullish Harami pattern and a trendline break is a combination that potentially could resulst in a buy signal. The second Harami pattern shown above on the chart of the E-mini Nasdaq 100 Future is a bearish reversal Harami.
The first candle was a long bullish green candle. On the second candle, the market gapped down at the open. Harami Candlestick Potential Sell Signal A sell signal could be triggered when the day after the bearish Harami occured, price fell even further down, closing below the upward support trendline. When combined, a bearish Harami pattern and a trendline break might be interpreted as a potential sell signal.