where to Short & Cover plotted on Chart.
Candle pattern: HARAMI
Some words about "BEARISH HARAMI":
Definition : Given on Chart
1. The market is characterized by a prevailing uptrend.
2. A white body is observed on the first day.
3. The black body that is formed on the second day is completely engulfed by the body of the first day.
Pattern Requirements and Flexibility
The pattern consists of two , in which the first day’s white engulfs the following day’s black . The first one should be a normal or a long white . Either the body tops or the body bottoms of the two may be at the same level, but whatever the case, the black body should be smaller than the previous white body.
The Harami is a sign of disparity in the market’s health. The market is characterized by an uptrend and a mood, and there is heavy buying indicated by a white body, which further supports the bullishness. However, the next day prices open lower or at the close of the preceding day and stay in a small range throughout the day, closing even lower, but still within the previous day’s body. Traders are now concerned about the strength of the market, due to this suddenly deteriorating trend.
Sell/Stop Loss Levels
The confirmation level is defined as the last close or the midpoint of the first white body, whichever is lower. Prices should cross below this level for confirmation.
The stop loss level is defined as the higher of the last two highs. Following the signal, if prices go up instead of going down, and close or make two consecutive daily highs above the stop loss level, while no is detected, then the stop loss is triggered.
Also read: Candle pattern "Bullish HARAMI" in earlier "ICICIPRULI Post"
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Disclaimer: Only For STUDY. For Taking Trade Decision Consult Financial Advisor.
VOLTAS, INTRADAY Levels for 31st July 2017.
LOW: 503.4 (as of Now)
Notice one thing FUT. is in Discount @ 3.30