Bullish Harami:

The Bullish Harami is a two-day pattern. The first day is a long, Black Candle. The second day is a shorter White Candle. The White Candle body must be inside the Black Candle body. High volume on the second day would be preferred.

A Bullish Harami Pattern begins to indicate that a reversal in sentiment for a stock is occurring.

Three Inside Up:

A Bullish Harami Pattern should always be confirmed on the third day by a White candle that closes above the second day White Candle. A gap up is even better. This then becomes a Three Inside Up Pattern.

The significance of this pattern is that the Bears are losing strength and the Bulls are getting back in. The second white candle on day three gives further indication of that fact. A White Candle on day four with a higher close would further confirm the pattern.

Remember that the Bullish Three Inside Up pattern is known as a reversal pattern. In other words, it is more significant when it appears after a downtrend.

All Japanese Candlestick Patterns should be used in conjunction with other technical indicators such as Volume, Moving Averages, Accumulation Distribution, Momentum, and others.

Candlestick charting is just another of many technical indicators of stock market action and reaction. It should be used in conjunction with other technical indicators that are available on the Internet such as Volume, Moving Averages, Momentum, MACD, and Accumulation Distributions plots.

Many day traders and swing traders use Japanese Candlesticks as quick and easily read indicators of the current Bull and Bear status of a particular stock. There are many sites on the Internet that will give you candlestick charts of any stock code you enter. You can review them and seek out any of the hundreds of popular patterns but if you subscribe to the information offered on this site:

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