Double candlestick patterns form an important part of Technical Analysis. I would like to call them Powerful patterns that generally form at end of the trends. Doble Candlestick Patterns are generally very reliable. They also act as very good entry signals.
Bullish harami
Features
Appears at the end of a downtrend.
Involves Two Candlesticks.
The First Candle engulfs the second candle.
TRADING LOGIC –
Enter at the high of the the Second candle
Stoploss below the patterns low.
Risk-Free trade would be initiating a buy position at patterns high.
trading a bullish harami
Bearish Harami
Features
Appears at the end of an Uptrend.
Involves Two Candlesticks.
The First Candle engulfs the second candle.
TRADING LOGIC –
Enter at the low of the second candle
Stoploss above the patterns low.
Risk-Free trade would be initiating a sell order below patterns low.
Trading a bearish harami
Bullish Engulfing
Features
Appears at the end of an Uptrend.
Involves Two Candlesticks.
The second Candle engulfs the first candle.
Generally, engulfing patterns have smaller wicks.
TRADING LOGIC –
Enter at the high of the second candle
Stoploss below the patterns low. order below patterns
Engulfing patterns are highly trusted patterns and great winners.