discussions from gkp topic

Ok so let me this get this straight. According to the links posted this pattern is a valid harami cross but not a valid three inside down pattern which is also known as a confirmed bearish harami pattern?

How confusing. It seems you are both right though but just talking about different patterns.

Sorry to get involved but I just learnt two new candlestick patterns so thanks guys

Hi Amo
with candlesticks you should only really trade them at the right place.
ie..known supports or resistance. anywhere else you will get a lot of false entry and that could mean the difference between profit and loss.
I love candlesticks but they have to appear at the right place or you will over trade them.

Amo,
not confusing at all. Bearish harami is valid and the third candlestick will confirm it if the sp closes below 220. the confirmation candlestick (todays) plus he harami is called three inside down.

Not sure where you are going here remo. We are at the top of a minor trend and this pattern confirms a probable change in trend, i.e a reversal. We are in exactly the right place.

There is nothing unauthodox here at all.

F4T

This particular pattern at a resistance is actually very simple. It's really just an inside bar trade - the second candle is the inside bar and the third one shows prices breaking to the downside so that's the direction in which you trade. Simples.

So a bearish Harami is valid as long as the body is contained within the previous candlestick. The high low can exceed it. Got it.

I wouldn't worry too much about it if I were you Amo. Trading candles is a very particular skill and takes years to master as I understand it. I only use a very few and am very particular about where they occur.

I don't have the knowledge or experience so I prefer to use other methods.

Best of luck though. Read Steve Nison (I think) if you want to know more.