The Harami Cross candlestick pattern has a bullish and bearish version, both are very similar but we’ll be talking about the bearish version because it gives a slightly better performance.
The Harami Cross pattern should not be confused with the regular Harami candle pattern.
The first candle in the bearish Harami Cross is a large full bodied bullish candle in the context of an uptrend.
The second candle should be a Doji candle that sits within the center of the first candle’s body. The upper and lower wicks of the Doji can not extend beyond the open and close of the first candle.
The only real difference between the Harami Cross and the Harmi pattern is that with the Harami pattern the Doji can extend beyond the body of the first candle.
While in theory the bearish Harami Cross pattern is supposed to be a bearish reversal signal, it actually acts as a bullish continuation pattern 57% of the time, which makes it a little more accurate than the regular bearish Harami pattern.