(Before It's News)
Harami is a Client Side VTL Indicator to identify Bullish and Bearish Harami candle stick patterns. When the Harami pattern appears, it depicts a condition in which the market is losing its steam in the prevailing trend direction. The Harami consists of a small real body (candle open close range is the real body) that is contained within the preceding large candles’ (Master Candle) real body. A bullish Harami comes after an upward price move and bearish Harami comes after a downward price move. The VTL indicator plots an up or down arrow after the Harami pattern is confirmed, that is, on the next candle after the Harami.
A buy signal could be triggered on the day after the bullish Harami occurred, if price close higher than Harami candles close price. Confirming the reversal with a down trend lines is a good practice. A sell signal could be triggered on the day after bearish Harami occurs, if price close lower than Harami candles close price and an uptrend line break happened. Note that the Harami candle in the chart is the candle prior to the up or down arrow in chart. A sell trade example is show the chart.
The Harami detection algorithm can be customized through parameters. Open the VTL script in VTL editor and parameter values are located at the top of the script file. Change the parameter values and compile the script and apply to chart.
1 Minimum Master Bar Size – Value in Pips
2 Maximum Master Bar Size – Value in Pips
3 Minimum Harami Bar Size Value in Pips
4 Maximum Harami Bar Size Value in Pips
5 Maximum Harami Bar to Master Bar Ratio
6 Minimum Harami Bar to Master Bar Ratio
7 Arrow Offset – Marker arrow offset from High/Low of Bar