Wednesday, November 23, 2011

Possibilty of triple bottom is alive....Bullish Harami candle was noticed on eod chart .

Possibilty of triple bottom is alive....Bullish Harami candle was noticed on eod chart ...global sentiment is weak but we are highly oversold ..

Bearish Belt Holt Pattern

BULLISH HARAMI
Type:Reversal
Relevance:Bullish
Prior Trend:Bearish
Reliability:Low
Confirmation:Strongly suggested
No. of Sticks:2
Definition:             
Bullish Harami Pattern is characterized by a small white real body contained within a prior relatively long black real body. “Harami” is an old Japanese word for “pregnant”. The long black candlestick is “the mother” and the small candlestick is “the baby”.
Recognition Criteria:
1. The market is in a bearish mood characterized by downtrend.
2. Then we see a long black candlestick.
3. We see a white candlestick on the following day where the small white real body is completely engulfed by the real body of the first day. The shadows (high/low) of the second candlestick are not necessarily contained within the first body, however it's preferable if they are. 
Explanation:
The Bullish Harami Pattern is a sign of disparity about the market’s health. While the market is characterized by downtrend and bearish mood; there is heavy selling reflected by a long, black real body however it is followed by a small white body in the next day. This may signal a trend reversal since the second day’s small real body shows that the bearish power is diminishing.
Important Factors:
The decisive fact about this pattern is that the second candlestick has a minute real body relative to the prior candlestick. Furthermore this small body is completely inside the larger one. The Bullish Harami Pattern does not necessarily imply that a rally will follow. Market usually enters into a congestion phase following the Bullish Harami.
We may need a third day confirmation to be sure that the downtrend has really reversed. 
This confirmation of the trend reversal may be signaled by a white candlestick, a large gap up or by a higher close on the third day.

1 comment:

  1. yeah pattern may be correct but nifty will break 4700

    read more from stoxtrends.com

    ReplyDelete

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