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Chart & Candlestick Patterns

Trading range breakouts occur when stock prices break above or below established support and resistance levels, indicating that price movements may no longer be contained within the previous trading range. A harami pattern consists of two candlesticks and suggests a reversal of the current trend: a bullish harami involves a large candlestick followed by a smaller candlestick within the first's range, while a bearish harami has a large candlestick followed by a smaller candlestick of the opposite color.

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221 views2 pages

Chart & Candlestick Patterns

Trading range breakouts occur when stock prices break above or below established support and resistance levels, indicating that price movements may no longer be contained within the previous trading range. A harami pattern consists of two candlesticks and suggests a reversal of the current trend: a bullish harami involves a large candlestick followed by a smaller candlestick within the first's range, while a bearish harami has a large candlestick followed by a smaller candlestick of the opposite color.

Uploaded by

aica1234
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Trading Range Breakouts:

occurs when prices break out of some zone that has contained price activity for
some time or is expected to contain price movements.
Breakout occurs when stock prices (or prices for any other asset class)
exceed previously determined support or resistance levels

Candlestick Patterns:
A harami is a two session reversal pattern i.e. its made up of two candlesticks and
implies that the price is about to turn.
Bullish Harami

A candlestick chart pattern in which a large candlestick is


followed by a smaller candlestick whose body is located within
the vertical range of the larger body
downtrend of negative-colored (black) candlesticks engulfing a
small positive (white) candlestick, giving a sign of a reversal of
the downward trend.

Bearish Harami

may be formed from a combination of a large white or black


candlestick and a smaller white or black candlestick
It is thought to be a strong sign that a trend is ending when a
large white candle stick is followed by a small black candlestick.
indication that the previous upward trend is coming to an end.

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