As other special patterns, Harami candlestick pattern is considered as a reversal signal. Traders usually use it as a reliable sign in trading. Therefore, in this guide, we will introduce Harami pattern and how to use it when trading in Binomo.
How to identify a basic Harami candlestick pattern
Harami is a pattern of 2 candlesticks with the opposite color. They often appear at the end of a trend and sign the end of that trend. It is seen as a sign to start a safe reversal trade in Binomo.
Harami pattern that appears at the end of the upward trend is called Bearish Harami. On the contrary, when it appears at the end of the downward trend, it is called Bullish Harami.
Harami pattern includes 2 candlesticks:
1st candlestick: Bullish or bearish candlestick.
2nd candlestick: A small candlestick lies behind the 1st candlestick with the opposite color to the 1st one.
For example, EUR/USD pair. The price creates Harami pattern and its counterpart.
Harami candlestick pattern trading strategy in Binomo
It is a reliable signal pattern. Harami pattern is often used with some reversal indicators to have the perfect points to start a trade.
Note: Choose the 5-minute candlestick chart in Binomo. At the same time, the best expiration time is 15 minutes.
Harami pattern with Support and Resistance level
Open UP orders = Bullish Harami + the price test support level.
Explain: The price that falls to the support zone is very likely to reverse from downtrend to uptrend. Use the appearance of Bullish Harami as a sign to open an Up order.
Open DOWN orders = Bearish Harami + the price tests the resistance level.
Harami pattern and RSI
Open UP orders = Bullish Harami + RSI is under 30 (Oversold).
Open DOWN orders = Bearish Harami candlestick pattern + RSI is above 70 (Overbought).
This is one of the popular reversal signals that usually appears and has a high accuracy rate.
In the next article, we will write about the other strategies around Harami. It’s all for today. Hope you have a good experience with Harami pattern! Thank you.