the hAnDbook of technIcAl AnAlysIsirrelevant. A bullish or bearish Harami formation is also affected by contextual
sentiment, augmenting or diminishing the reversal expectation of the pattern itself.
Within the context of a trend, a Harami formation is regarded as more bearish if
it is located further up along an uptrend and more bullish if it is located further
down along a downtrend. The color of both the first large candlestick’s real body
and the second smaller‐bodied candlestick is of lesser importance and may be
black or white. This means that the first large candlestick of a Harami formation
may well be bullish or bearish. See Figure 14.11.
figure 14.11 Color Independence in Harami Patterns.
figure 14.10 Example of Maximum Favorable Excursion.