As of 12/20/2024
Indus: 42,840 +498.02 +1.2%
Trans: 15,892 +32.54 +0.2%
Utils: 986 +14.76 +1.5%
Nasdaq: 19,573 +199.83 +1.0%
S&P 500: 5,931 +63.77 +1.1%
|
YTD
+13.7%
0.0%
+11.9%
+30.4%
+24.3%
|
 44,200 or 41,750 by 01/01/2025 16,100 or 17,700 by 01/01/20251,050 or 975 by 01/01/202520,500 or 19,300 by 01/01/20256,100 or 5,775 by 01/01/2025 |
As of 12/20/2024
Indus: 42,840 +498.02 +1.2%
Trans: 15,892 +32.54 +0.2%
Utils: 986 +14.76 +1.5%
Nasdaq: 19,573 +199.83 +1.0%
S&P 500: 5,931 +63.77 +1.1%
|
YTD
+13.7%
0.0%
+11.9%
+30.4%
+24.3%
| |
|
44,200 or 41,750 by 01/01/202516,100 or 17,700 by 01/01/20251,050 or 975 by 01/01/202520,500 or 19,300 by 01/01/20256,100 or 5,775 by 01/01/2025 | ||
My book,
Encyclopedia of Candlestick Charts
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The bearish harami is supposed to act as a bearish reversal, but testing shows that it is a bullish continuation pattern 53% of the time. That is what I call "near random." An upward price trend leading to the start of the bearish harami helps price close above the top of the candle pattern and score an upward breakout -- continuing the uptrend. Once price breaks out, the trend is not an exciting one. Looking at the various combinations of bull/bear and up/down markets, the price change over 10 days is less than half the 6% I consider good. That is why overall performance ranks 72nd (where 1 is the best performance out of 103 candlestick types).
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Theoretical performance: Bearish reversal
Tested performance: Bullish continuation 53% of the time
Frequency rank: 26
Overall performance rank: 72
Best percentage meeting price target: 64% (bull market, down breakout)
Best average move in 10 days: -4.01% (bear market, down breakout)
Best 10-day performance rank: 50 (bear market, down breakout)
All ranks are out of 103 candlestick patterns with the top performer ranking 1. "Best" means the highest rated of the four combinations of bull/bear market, up/down breakouts. The above numbers are based on hundreds of perfect trades. See the glossary for definitions. |
 Bearish Harami
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As I mentioned in the introduction, the bearish harami functions randomly, so do not depend on it acting as a reversal of the primary trend. In fact, it acts as a continuation pattern more often than a reversal. The overall performance rank of 72 suggests that the trend after the breakout is a weak one. A check of the statistics confirms this. In fact, the best performance 10 days after the breakout is a drop of 4.01% in a bear market. A good move would be 6% or more, so this falls short. The drop ranks 50th out of 103 candle patterns, or about mid range.
The frequency rank is 26 and that means you will be able to find plenty of bearish harami's in a historical price series. Whether or not it is worth the hunt I will leave up to you.
| Characteristic | Discussion |
| Number of candle lines | Two. |
| Price trend leading to the pattern | Upward. |
| Configuration | Look for a tall white candle followed by a small black one. The opening and closing prices must be within the body of the white candle. Ignore the shadows. Either the tops of the bodies or the bottoms (or both) must be a different price. |
If you want a few bones from my Encyclopedia of candlestick charts book, here are three to chew on. The pages refer to the book where the tips appear.
The chart shows a bearish harami, circled in red, on the daily scale. This one appears in an upward price trend, as required. The first candle is a tall white one followed by a black candle with a smaller body. The body fits within the body of the white candle.
The breakout from this candlestick pattern is upward. A breakout, by the way, is a close either above the top of the candlestick pattern or below the bottom of it. In this example, price closes above the top of the candle first, so the breakout is upward.
This bearish harami candle acts as a continuation of the upward price trend, but notice that the trend soon ends. Also notice that the primary trend is downward. Although this bearish harami happened to breakout upward shortly before a downturn, the setup is correct. In other words, for the best results as a reversal candle, look for the bearish harami to appear at the top of an upward retrace in a downward price trend. When price breaks out downward, it rejoins the existing primary trend and price tends to drop.
-- Thomas Bulkowski
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