Bearish Harami

Feeling bullish about your investment? Don’t take it lightly! The Bearish Harami candlestick pattern could be the first sign of trouble for you. This is a warning that indicates the bullish momentum might be fading fast. This candle usually appears after a strong uptrend. Now the question is how to handle this situation and what are the limitations and considerations. Let’s understand everything in detail. Before going into details, let's understand the pattern. Bearish Harami pattern usually consists of two consecutive candlesticks such as long green candle and small red candle. The long green candle indicates the strong buying and an upward trend. On the other hand, the red small candle suggests a loss of buying momentum and potential increase in selling. The key to the Harami pattern is the complete overrun of the red candle by the green one. This clearly indicates a momentous change in the market dynamics. Now let’s understand the interpretation and trading implications of Bearish Harami. Undoubtedly, Bearish Harami is a bearish signal but its important to use it carefully with other technical indicators and fundamental analysis.  It is more consistent when it appears at the top of an uptrend or after a prolonged bullish run. Traders usually use this pattern as a warning signal to reduce their long positions or consider short selling but it is necessary to wait for confirmation before taking any action. When it comes to limitations and considerations, Bearish Harami is not foolproof. This can be a false signal, especially in volatile markets. So always consider the overall market context, support and resistance levels and other crucial technical indicators before making trading decisions. Picking potential stocks with Bearish Harami signal is always challenging but a good screener can make the task easy for you. FindScan is one of the best screeners which is suitable for both beginner and professional traders. This screener allows users to set their required parameters like growth rate, P/E ratio, dividend yield, and many more according to their investment strategy and risk-taking ability. It provides the best-screened stock list along with detailed information about the companies which will ease your stock picking decision. Try this screener today and experience its smooth interface and advanced features.