This is going to be a very quick lecture because we are not going to use any other double candle pattern.
We have seen the bullish and the bearish engulfing pattern, tweezers top and tweezers bottom, the dark
cloud cover and the piercing pattern.
So you have a lot of double candle tools to face the market.
I'm showing you very quickly the Harami but we are not going to use it because it is not useful in the
forex market.
The reason I'm showing the Harami is because it is very popular and you will easily find it in any book
or guide about Forex trading.
So I don't want you to leave a bad review saying the instructor didn't teach me the Harami.
Just joking.
There are other double candlestick patterns
that we are not going to see because they are useless in the forex market.
So you have enrolled in this course,
you have invested money but, above all, time and I think that the best way to repay you is to filter
between good and bad patterns without wasting your time.
That being said, the Harami is another gap pattern.
That means that it needs a gap between the two candles.
Here we have a bullish Harami: the first candle is in line with the previous downtrend.
Then there is a gap high, that is not in line with the previous trend.
So the gap high is the first clue that sellers may lose their power.
The second candle is a candle with a very small real body,
ideally a doji.
The second candle confirms the suspects that traders already had after the gap high.
Sellers are losing power and now the battle between buyers and sellers seems equal.
Here we can see a bearish Harami,
ff course the logic behind is the same but this time it appears after an uptrend.
We are not going to use the Harami for two reasons.
The first reason is that it is very rare,
you will have hard times if you try to find the Harami pattern in one of your charts.
The second reason is that if you think about it, you don't really need to know the Harami to understand
that the market is in a period of uncertainty.
The second candle is already a candle with a very small real body or a doji.
So the second candle by itself expresses indecision,
just like we have seen for the doji.
We also have other double candle patterns,
most of them with a gap in between like the upside gap two crows that we see here.
This is like an inverted Harami and in the stock market is used more or less in the same way we use
the bearish engulfing pattern.
I'm stopping here talking about the double candle patterns, I could talk for hours but we need to
follow our path.
So I hope you are excited to start the next part of the course.
We are going to study the triple candlestick patterns and then we are going to face the market with
all we have studied so far.