How does the Bullish Harami Candle work?
How Does The Bullish Harami Candle Work? Bullish Harami is made up of two different types of candles.Bullish Harami Candle is made up of two words, Bullish + Harami.
Here the word Bullish means “bullish” and the word harami is a Japanese language word which means “pregnant woman”.
The Bullish Harami candle indicates an uptrend in the chart, or in other words, it is a bullish candle showing momentum.
When the Bullish Harami candle is formed in the chart, then it is more correct to understand that now the decline in the stock is over and now the uptrend is about to start.
The structure of the Bullish Harami candle can be seen in the above photo.
In Bullish Harami Candle, the first candle is Long Bearish i.e. red color showing long bearishness and the second candle is Small Bullish candle i.e. it is green color candle showing short bullishness.
As mentioned above, the Bullish Harami Candle is placed on a pregnant woman, that is, the first candle is “the mother” and the second candle is “the child in her womb”.
Bullish Harami Candle is always formed at the Bottom after a long decline in the chart, if it forms above then it will be considered as a normal candle.
Because after this candle is formed in the chart, the possibility of recession or more decline in that stock ends and the boom can start.
How Bullish Harami Candle is formed?
The first candle in Bullish Harami Candle should be Long Bearish.
The second candle should be of small green color ie Small Bullish.
When the second candle is formed in the Bullish Harami Candle, then it should open with Gape up open or fast from the first candle.
Keep in mind that when the second candle is ready, then it should trade in the middle of the first candle, it should not go beyond the open or high price of the first candle.
When the second candle is closed then it should close equal to or below the open price of the first candle i.e. the second candle should be in the middle of the first candle.
The smaller the second candle, the better it works.
The most important thing to keep in mind in Bullish Harami Candle is that the Small Bullish candle should be in between the Open and Close price of the Long Bearish candle.
Volume is also very important in this candle, in both the candles, the second candle should have more volume than the first candle, then the possibility of the stock going up increases, but sometimes it works well even if the volume is less.
If you see the formation of the first candle Bearish marubozu here, then it will also be called Bullish Harami Candle.
You can see Bullish Harami Candle in the chart in two ways. for example…
First candle Long Bearish and second candle Small Bullish
First candle Long Bearish marubozu and second candle Small Bullish
This candle is a candle pattern for all types of market whether you work in Indian stock market, or commodity market, or Forex trade or any other market.
Many times, on the second day of candle formation, the price opens with Gape up or good momentum and there is a chance to buy.
Intraday chart, Daily chart, Weekly chart, or Monthly chart can appear in all these types of charts.
After the formation of Bullish Harami Candle, if the hold of the buyer in the stock becomes stronger than that of the seller, then the stock gains momentum.
If you do Intraday then you can earn good profits by watching it in 5 minutes, 10 minutes or 15 minutes chart.
In Swing Trading you should see this candle in Time Frame like 1 Day, 30 minit.
Teader, now you must have come to know that when Bullish Harami Candle is formed in the market then what is its effect in the market.
Now we learn to take trade with the help of this candle.
How to take trade with the help of Bullish Harami Candle?
When Bullish Harami Candle is formed in the chart, then you have to confirm whether this candle is correct or not by looking at them in the above way.
When the Bullish Harami Candle is formed in the chart, then if the gape up is open, then buy, if it does not happen, then buy until the price of the new candle closes above the high of the first candle of the Bullish Harami Candle. Have to do
When you create your position, then you have to put Stop Loss on the Low Prise of the first candle of Bullish Harami Candle.
Things to keep in mind in Bullish Harami Candle…
The second candle should be exactly between the open and close price of the first candle.
The first candle can also be Bearish marubozu.
While creating a position, the new candle must close above the high of the first candle of the Bullish Harami candle.
The smaller the second candle, the better the Bullish Harami Candle works.
Let us now understand with an example.
If you look at the above stock chart, here you can see the formation of Bullish Harami Candle after a long fall.How does the bullish Harami Candle work?
Now you have to make a position, then it has to be seen whether this candle is properly made of Bullish Harami Candle or not.
Now after the formation of Bullish Harami Candle in the chart, you have to see the candle after that, is it a gape up opening??
Do not enter the trade until the price of the candle after the Bullish Harami Candle closes above the High Price of the Long Bearish Candle.
When the price of a candle goes above the price of the Long Bearish candle, then you have to Buy on that candle.
Immediately after buying you will get Bullish Harami candle
Stop loss is to be placed at the low price of the first candle of harami candle.
Unless you see a trend changing signal in the chart, you should not do Profit booking.
If you have a problem with this candle or any other stock market, then do tell us by commenting, we will solve them as soon as possible.How does the bullish Harami Candle work?
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