Harami Cross

Appearance: An unusually large body followed by a doji, where the second candle is within the body of the prior candle.

Criteria: The Harami Cross has a large-bodied candle with a doji following it, which must be contained within the body of the first candle.

Effect: The Harami Cross is a reversal signal, as the previous trend has failed to be sustained.

Note: In candlestick descriptions, "white (green)" refers to an up-bar, and "black (red)" refers to a down-bar. Individual traders prefer different bar colors. For example, we personally trade with candles set to green for up and red for down. (TradeStation defaults their Candlesticks to this color convention.) Most related textbooks use white (or green, if color is used) for up and black (or red) for down.