The King's Trader Education

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The Simpleton's Fibonacci
Fibonacci 101
Fibonacci 102
Fibonacci 103
Practiical Candlestick - Basic Patterns
Steve Nison - Interview with Father of Candlesticks
Steve Nison - Favorite Candlestick Signal
Practical Candlestick - Seedwaves
Practical Candlestick - OBV
Practical Candlestick - Harami
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Basics of Bollinger Bands
Distribution/Accumulation Zones
Donchian Channels
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Multiple Moving Averages - "The Rope"
Three Price Break
Elements of Gann Angles
Gann Percentage Pivots
Gann on 1929
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Trader Training - Free Educational Trading Articles:

Practical Candlestick - Harami

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Now, a more POWERFUL version of the harami pattern is the “Harami Cross” or the “petrifying pattern.” The Harami Cross is a long candle followed by a pure doji candle. A pure doji has no real body on the candle. At most, it has a very small one. And the longer the wick on the doji, the better it is. In this daily basis chart of the OEX, a Harami Cross forms on the chart in late March 2000:

As we all know, by now the bulls were all screaming, “Here come the bulls, here come the bulls!” But the Harami Cross was saying, “Oh no you don’t!”

A trader who ignores the Harami Cross does so at his or her own peril. Had you bought on the bull fever that this pattern showed, you would have gone long at the absolute top. OEX at 840. Where is it now? OEX 576. Oooops! There was a margin call in the making…

Likewise, never ignore a Harami Cross that forms on the bottom. If you try to short it, you may just get napalmed.

We will continue to explore these and other patterns in each issue of TrendTimes. I will also be holding impromptu LIVE classroom mini lectures during a lull in trading hours on our website.

I strongly encourage everyone to get Steve Nison’s books on this subject. It will help you become a candlestick ace! He also has a great videotape box set. The books or the tapes you can always get the best prices on at our bookstore: http://KingCAMBO.com/bookstore.

"It takes a man a long time to learn all the lessons of all of his mistakes. They say there are two sides to everything. But there is only one side to the stock market; and it is not the bull side or the bear side, but the right side. It took me longer to get that general principle fixed firmly in my mind than it did most of the more technical phases of the game of stock speculation" ----from REMINISCENCES OF A STOCK OPERATOR