As of 11/20/2019
  Indus: 27,821 -112.93 -0.4%  
  Trans: 10,695 -152.59 -1.4%  
  Utils: 855 +6.70 +0.8%  
  Nasdaq: 8,527 -43.93 -0.5%  
  S&P 500: 3,108 -11.72 -0.4%  
YTD
 +19.3%  
 +16.6%  
 +19.9%  
 +28.5%  
 +24.0%  
  Targets    Overview: 11/14/2019  
  Up arrow28,200 or 27,100 by 12/01/2019
  Up arrow11,400 or 10,600 by 12/01/2019
  Up arrow870 or 800 by 12/01/2019
  Up arrow8,700 or 8,200 by 12/01/2019
  Up arrow3,200 or 3,025 by 12/01/2019
As of 11/20/2019
  Indus: 27,821 -112.93 -0.4%  
  Trans: 10,695 -152.59 -1.4%  
  Utils: 855 +6.70 +0.8%  
  Nasdaq: 8,527 -43.93 -0.5%  
  S&P 500: 3,108 -11.72 -0.4%  
YTD
 +19.3%  
 +16.6%  
 +19.9%  
 +28.5%  
 +24.0%  
  Targets    Overview: 11/14/2019  
  Up arrow28,200 or 27,100 by 12/01/2019
  Up arrow11,400 or 10,600 by 12/01/2019
  Up arrow870 or 800 by 12/01/2019
  Up arrow8,700 or 8,200 by 12/01/2019
  Up arrow3,200 or 3,025 by 12/01/2019

Bulkowski's Bullish Harami Cross

 

My book, Encyclopedia of Candlestick ChartsEncyclopedia of Candlestick Charts book., pictured on the left, takes an in-depth look at candlesticks, including performance statistics.

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-- Tom Bulkowski

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The bullish harami cross is another candlestick with good potential, but it acts almost randomly. Just 55% of the time price continues the bearish trend. That is two percentage points better than the bullish harami. The chief difference between the two candle patterns is that the second day is a doji that fits inside the prior day. A doji is a candlestick in which the opening and closing prices are within pennies of each other.

After the breakout, the price trend ranks 50, which is mid list out of 103 candle patterns. That suggests the trend does not last long.

Important Results
Discussion
Identification Guidelines
Three Trading Tidbits
Example
See Also

Bullish Harami Cross: Important Results

Theoretical performance: Bullish reversal
Tested performance: Bearish continuation 55% of the time
Frequency rank: 47
Overall performance rank: 50
Best percentage meeting price target: 74% (bull market, up breakout)
Best average move in 10 days: 4.52% (bear market, up breakout)
Best 10-day performance rank: 36 (bull market, up breakout)

All ranks are out of 103 candlestick patterns with the top performer ranking 1. "Best" means the highest rated of the four combinations of bull/bear market, up/down breakouts.

The above numbers are based on hundreds of perfect trades. See the glossary for definitions.

The ideal bullish harami cross candlestick
Bullish Harami Cross

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Bullish Harami Cross: Discussion

As with many candle patterns that I tested, theory disagrees with reality. The bullish harami cross is no exception. It is supposed to act as a bullish reversal of the downward price trend, but price continues falling 55% of the time. That is what I consider "near random." In other words, the candlestick offers no help in determining the breakout direction.

The best percentage move 10 days after the breakout is a rise of 4.52% in a bear market. I consider moves of more than 6% to be good, so the post breakout trend is weak.

Bullish Harami Cross: Identification Guidelines

CharacteristicDiscussion
Number of candle linesTwo.
Price trend leading to the patternDownward.
ConfigurationLook for a two candle pattern in a downward price trend. The first line is a tall black candle followed by a doji that fits within the high-low price range of the prior day.

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Bullish Harami Cross: Three Trading Tidbits

If you want a few bones from my Encyclopedia of candlestick charts book, here are three to chew on. The pages refer to the book where the tips appear.

  1. Bullish harami cross candles that appear within a third of the yearly low perform best -- page 403.
  2. Select tall candles -- page 404.
  3. Bullish harami cross patterns that appear within a third of the yearly low tend to act as continuations -- page 406.

Bullish Harami Cross: Example

The bullish harami cross candlestick on the daily scale

The chart shows a bullish harami cross (circled in red) in a downward price trend on the daily chart. The downtrend meanders lower instead of the straight-line runs that I like to see. The breakout from this candle pattern is upward when price closes above the top of the bullish harami cross. That takes about two weeks to happen, but happen it does. The uptrend is short lived, though, as the chart shows. Since the primary trend before the pattern began was downward, the price trend resumes falling during the trading doldrums of August.

-- Thomas Bulkowski

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See Also

 

Support this site! Clicking any of the books (below) takes you to Amazon.com. If you buy ANYTHING while there, they pay for the referral.

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Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

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