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The Harami bullish candlestick pattern is one of the most popular candlestick patterns.
Similarly, it is found on heikin-ashi candles as well, but the logic is different.
Harami candles are formed when the body of the current candle is contained within the body of the previous candle.
It consists of average prices that make up the body of a heikin ashi candle. It is imperative to note that the open and close prices of the heikin ashi candle represent the open and close prices of the previous session, while the close is the average of the open, high, low, and close prices of the current session. As a result, the open price represents the average of the previous candlestick body, and the closing price represents the average of the current candlestick range.
A large candle body indicates a strong trend during the current session. If it is followed by a relatively small range in the next candle, a harami pattern is formed.
The bullish harami pattern occurs when the first candle is bearish (red) and the second candle is bullish (green).
This pattern can be plotted on the chart by adding it from the study menu in TradePoint & RZone. The pattern is also available in the system builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.