UK Accounting Glossary
A harami cross is a candlestick charting pattern that can signal the reversal of a bullish or bearish trend — it’s a reversal pattern. Two candles comprise a harami cross. The first is a long candle, the second is a doji that is completely engulfed by the body of the first candle. If the first candle in a harami cross is white, and the harami cross pattern occurs during an uptrend, then the harami cross is sending a bearish signal; the doji suggests sellers have begun to assert their influence on a security and buyers don’t have the strength to continue the uptrend. If the first candle in a harami cross is black and the harami cross pattern occurs during a downtrend, then the harami cross is sending a bullish signal; the doji suggests buyers have begun to assert their influence and sellers don’t have the strength to continue the downtrend. In either case, traders consider the reliability of the harami cross to be only of medium reliability. Trading on subsequent days is necessary to confirm the reversal of the trend.
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This glossary post was last updated: 9th February 2020.