The Bullish Harami Cross is a significant reversal indicator that occurs during a downtrend. This pattern signals that a bullish reversal may be on the horizon. It consists of a large bearish candle followed by a Doji that is contained within the body of the preceding candle.
Pattern Composition:
The Bullish Harami Cross function identifies this pattern programmatically. It verifies that the first candle is bearish, followed by a Doji. The opening and closing prices of the Doji should be within the body of the preceding bearish candle.
Traders should look at the Bullish Harami Cross as an early sign of a potential bullish reversal, especially when it appears during a strong downtrend. However, it is crucial to consider other technical analysis tools and indicators to confirm the reversal before making any trading decisions. Market confirmation in subsequent trading periods is essential to validate this pattern.