Bearish Harami Cross candlestick pattern
Updated on March 5, 2023
The Bearish Harami Cross is a bearish reversal pattern. This pattern is formed on a stock chart when a small white candlestick is followed by a large black candlestick and the latter completely engulfs the former. The pattern is called a “Harami Cross” because the two candlesticks are so close together that their shadows overlap, forming a cross-like shape.
Why is Bearish Harami Cross considered to be a Bearish reversal Pattern?
The Bearish Harami Cross pattern is considered to be a bearish reversal pattern as it signals a potential change in trend from an uptrend to a downtrend. This pattern is usually seen as a bearish signal due to its indication that the selling pressure has increased resulting in the takeover of control by the bears.