Candlesticks - Vol 10 - Harami

[cherrysAngeljohn]

DONT READ THIS CAUSE IT ACTUALY WORKS. YOU WILL GET KISSED ON THE NEAREST POSSIBLE FRIDAY BY THE LOVE OF YOUR LIFE. TOMMORROW WILL BE THE BEST DAY OF YOUR LIFE.HOWEVER IF YOU DONT POST THIS COMMENT TO AT LEAST THREE VIDEOS YOU WILL DIE WITHIN TWO DAYS.NOW YOU STARTED READING THIS DONT STOP.THIS IS SO SCARY.PUT THIS ON AT LEAST FIVE VIDEOS IN 143 MINUTES WHEN UR DONE PRESS F6 AND UR LOVERS NAME WILL APPEAR IN BIG LETTERS. THIS IS SO SCARY CAUSE IT ACTUALLY WORKS

[faYte0607]

Hi Lance,

Just wondering, @5:55, can the 4th and 5th candle be a Harami as well since the 5th candle's real body is inside 4th candle's real body? Also the 6th & 7th pair as well as the last 4th & 5th pair.

If so, then it's really uncertain which direction the stock will go even with a confirmation, just a game of probability.

[YourTradingCoach]

@faYte0607

Hi faYte0607,

No. These are not Harami. These videos demonstrate reversal patterns. As such, price must be moving directionally prior to the pattern. ie. a bullish harami occurs at the bottom of a downward move. A bearish harami occurs at the top of an upwards move. In the examples you've suggested, price is contained within a narrow range sideways congestion. Any patterns within such an environment are invalid. Context is essential in using patterns.

Cheers Lance.

[89myacc]

Hi I just wanted to ask if the shadow of the second candle is not contained within the body of the first would that count as a harami?

[YourTradingCoach]

Hi 89myacc,

Correct. The harami definition requires the real body of the 2nd candle to be within the real body of the 1st. If the shadow extends beyond the real body, it still meets the definition. Be sure to consider the psych of the pattern though - every pattern is unique. If the shadow has broken the real body, what will that mean in that case? See my Advanced Candlestick Trading articles on my website for more.

Cheers,

Lance.

[luckyload3r]

plus let's not forget that tight stops would prevent any serious loss

[YourTradingCoach]

Hi luckyload3r,

Great comment. Thanks. Risk Management is an essential part of all trading, whether using these candlestick patterns or any other entry technique.

Happy trading,

Lance.

[TheDjbang]

Hi Lance,

Do you think that when the second candle in the pattern is the opposite colour to the trend candle that the signal is more powerful than when the two candles in the pattern are the same colour?

[YourTradingCoach]

Hi TheDjbang,

Generally this is considered more powerful. Of course, the even more important information is in considering the context of the pattern - where is it occurring within the market structure.

Cheers,

Lance.

[viktermore]

I have a question YourTradingCoach regarding last chart in this video.

can the candle that is counted as number 5 from the end of chart be considered as shooting star

that got confirmed by next candle closing down?

if i would then enter short based on shooting start i would end up in loss because of sharp move of last green candle above shooting start.

right?

[YourTradingCoach]

Hi viketermore,

It could well be a valid setup. Certainly it meets the textbook definition, but then we don't trade textbooks. You need to check the context of where this pattern is occurring within the bigger picture. If it's rallied up into resistance and given this signal, then go short. If it's broken to an uptrend then the higher odds trade is waiting for a bullish pattern. If it was a valid pattern, then certainly it led to a loss - that happens.

Cheers,

Lance.

[affectedstudent]

Candle Lightens my heart & trade ! Thanks Lance

[YourTradingCoach]

Thanks affectedstudent,

Glad you liked the video

Lance

[Ortmoon]

Thanks once again ; -)

[YourTradingCoach]

You're welcome Ortmoon,

Happy trading,

Lance.