Joseph_King

Crude Oil - Bullish Harami?

TVC:USOIL   CFDs on WTI Crude Oil
Not a candlestick pattern specialist but looks like a text book Bullish Harami on weekly; the green candle body formed last week is completely engulfed by the red candle from the week before.

"The Bullish Harami is a sign of disparity in the market’s health. The market is characterized by a downtrend and a bearish mood, and there is heavy selling reflected by a red body, which further supports the bearishness. However, the next day prices open higher or at the close of the preceding day and the short traders are alarmed. This leads to the covering of many short positions, causing the price to rise further. The latecomers short the trend they missed the first time, and slow down the rise. Thus, a smaller green body is formed. This may signal a trend reversal since the second day’s small real body shows that the bearish power is diminishing."

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