What it looks like
Two candles. First, a long candle in the direction of the move. Second, a doji whose open and close sit inside the first body. Bullish: after a long down candle. Bearish: after a long up candle.
What it means
A strong candle was followed by complete indecision. The pressure has stopped, not just slowed. It is still one of the gentler signals: a hint the move is tiring and no more than that.
Bullish and bearish versions
How to trade it
- 1
Do not trade it on its own.
- 2
Confirm: wait for a close above the pattern's high (bullish) or below its low (bearish).
- 3
Enter on that close, stop just beyond the other end of the pattern.
- 4
Target: 2 times the stop, or the nearest swing level.
- 5
Example: on US30 4 hour a 150 point up candle into the previous week's high is followed by a doji. A later candle closes below the pattern's low; you sell with the stop above the high and aim for twice that risk.
A close below the pattern's low (bullish) or above its high (bearish).
Where it works best
After a long move into a floor or ceiling, on 1 hour and higher charts.
WickSpeak finds the harami cross automatically on any chart and names it on the candles that made it. Next to the name it writes what the pattern is, how to trade it and what proves it wrong, so you never have to guess the rule. In Playbook you can use the harami cross, or any of the 146 patterns, as a condition alongside up to 12 conditions on any of 12 timeframes, then backtest it on past candles with your costs.
Common mistakes
- Trading the doji close directly.
- Treating any small candle as a doji.
- Ignoring how wide the stop is beyond the long candle.
Related patterns
Questions traders ask
Is a harami cross stronger than a harami?
It is read as a stronger version, because the second candle shows complete indecision. It still needs confirmation.
What is a doji?
A candle whose open and close are at nearly the same price.
How do I confirm a bullish harami cross?
Wait for a candle that closes above the pattern's high, then buy with a stop just below its low.
What cancels a harami cross?
A close beyond the far end of the pattern: below the low for bullish, above the high for bearish.