Bearish Harami Cross
This is a major bearish reversal pattern, which is even more significant than a regular Bearish Harami. The outline again looks like a pregnant woman, as with the Bearish Harami Pattern. However, now the baby is a Doji.
Basically, the pattern is characterized by a white body followed by a Doji that is completely inside the range of the prior white body.
How to identify
- The 1st day is a long white day.
- The 2nd day is a doji day that is engulfed by the 1st day’s body.
The 2nd day’s price range does not pierce the previous day’s range and closes about where it opened.
Volume on the 2nd day is low which indicates that traders are lacking enough information to decide whether to go long or short.