What is Harami Cross?
Harami Cross is a Forex candlestick reversal pattern (it changes the direction of the trend).
This candlestick formation consists of two candlesticks, one is relatively long and the next is very very short that it looks like a cross (almost has a horizontal line as a body).
How does Hammer Cross formation look like?
It has a typical formation of a long candlestick followed by a shorter candlestick that hardly has a body, the following small candlestick has to be entirely included within the body of the previous candlestick body.
Hammer Cross can be either bullish or bearish.
How can I trade with Harami Cross candlestick pattern?
Hammer Cross is a reversal candlestick pattern, it means that whenever it occurs, we should be expecting a reverse in the direction of the market.
So if it occurs during an uptrend, it changes it to a downtrend.
If it occurs during a downtrend, it changes it to an uptrend.
During an uptrend:
When Harami Cross pattern occurs during an uptrend, we should expect it to reverse and start downtrending. This means we should be looking for selling opportunties.
During a downtrend:
When Harami Cross forms during a downtrend, we should expect the market to reverse and we start seeing an uptrend. This should be a strong buying signal for us.
In all cases, be sure to wait for a confirmation candlestick in the same direction of your potential trade. And always keep in mind other technical analysis methods.