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A Harami Cross is a reversal candlestick pattern that consists of a long candle is followed by a Doji.
For the pattern to be a valid Harami Cross, the Doji should be located within the body of the first candle.
Harami means “conception” or “pregnant” in Japanese.
The first candlestick is seen as the “mother” with a large real body that completely enclosing or embodies the smaller second candlestick, creating the appearance of a pregnant mother.
The Harami Cross pattern is more significant than the Harami pattern as it contains a Doji, which is a candlestick with no or very little real body.
A Doji is formed when the close price and the high price are the same or very close.
This small body size indicates indecision and uncertainty in the market.
A Doji with long shadows has a greater significance than a Doji with short shadows.
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