Bearish harami cross is the bearish reversal candlestick pattern usually occuerd in the uptrend of the market.This bearish harami cross is the major trend reversal pattern more significant than bearish harami.In this pattern long white candle appears followed by doji.
Acknowledging Criteria:
1. Financial market is in uptrend for long time.
2. We can see long white candlestick in the first day of the trade.
3. Then we see a doji appeared completely engulfed by the real body of the first day on the second day.
Definition
The Bearish Harami Cross Pattern is a sign of disparity about the market’s health. Market is bullish and strong buying continues as evidenced by the long, white real body but then we see the doji. This shows that the market may not continue in uptrend.
Important Factors:
While the Bearish Harami Pattern is not a major reversal pattern, the Bearish Harami Cross Pattern is a major bearish reversal pattern. If a harami cross appears after a long white candlestick, longs should take notice of it since harami crosses call tops very effectively.
A confirmation on the third day is required to be sure that the uptrend has reversed. This confirmation may be in the form of a black candlestick, a large gap down or a lower close on the third day.