Question

When is the Harami pattern considered as a bearish or bullish reversal signal?

a) When the small candle is bearish
b) When the small candle is bullish
c) When the large candle is bearish
d) When the large candle is bullish

Answer 1

The Harami pattern is considered as a bearish reversal signal when the small candle is bearish and the large candle is bullish.

Step-by-step explanation:

The Harami pattern is a candlestick pattern used in technical analysis to identify potential trend reversals. It consists of two candlesticks, with the first being a large candlestick and the second a smaller candlestick that is engulfed by the first. The Harami pattern is considered as a bearish reversal signal when the small candle is bearish and the large candle is bullish.