Wednesday, December 17th, 2014 by Tim Lanoue
As I mentioned in my previous article I am back with the Bearish Harami trading pattern. Now I am not sure if you guys have had the time to test out the Bullish Harami pattern like I have myself but I have been noticing some great results. Anyway guys, let’s take some time out of our day and learn a little bit about bearish harami patterns and how we can incorporate them when trading online with binary options.
As with any binary options strategy it is absolutely imperative that we have the proper set up before placing any investments. I have started receiving a large amount of emails since I started my own binary options channels about everything that you could imagine related to binary options. Anyway guys, 9 out of every 10 emails concerning a problem with trading patterns often are resolved after fixing a set up issue concerning a trading pattern. Many novice and experienced traders are so anxious to get started with binary options and to use a high success rate trading pattern that they look over the most simplistic step, which is the set up. They may be using the wrong time frame, trading the wrong asset, trading during the wrong hours or whatever the issue may it can always be fixed and what I am preaching to you guys reading this, make sure to set up your trading pattern correctly please, otherwise your results may not be quite like you are hoping.
Anyway guys, back to it, when setting up this trading pattern we are setting it up just like the Bullish Harami trading pattern which I discussed in a previous trading article. Meaning that we need access to a charting solution, my favorite charting solution to use would be www.freestockcharts.com due to the large variety of assets and indicators to choose from. Next, we need a reliable asset to invest with, meaning that it needs to be a low volatility currency pair, high volume stock or popularized commodity. The following list are assets that I suggest to try when using this trading pattern: Eur/Usd, Aud/Usd, Usd/Chf, Usd/Cad, Apple, Exxon, Microsoft, Twitter, Facebook, Nike, Gold, Oil or Silver. The next step to our setup is to make sure that the time frame that we are analyzing our asset is set to a period of 15 minutes and preferably during market hours, like the New York trading session for example.
Now that we have the proper setup established we can work on trading bearish harami patterns. In the first picture below you can see an example of how we use this trading pattern, unlike the Bullish Harami trading pattern where we needed three steps in order to place an investment we only need one step to occur. This step would be for a bearish candle to reside completely within the vertical portion of the previous candle, however, this bearish candle must be within a bullish candle completely. Basically meaning that we need a bearish candle to reside completely within the limits of the previous bullish candle. In the pictures below you can see examples and how all of our investments ended up as winners. When placing an investment with this trading pattern it is imperative to keep your expiry times within 15 to 30 minutes, no shorter nor longer or else this trading pattern won’t work quite like the way it is suppose it.
Using Bearish Harami Patterns when using technical analysis oriented trading patterns is extremely effective and should be practice on a daily basis. The best advantage about these harami patterns is that they require the use of no indicators, meaning that it depends entirely on Price Action trading pattern, which is more than likely why these trading patterns have such a high success rate. If you guys have any questions, comments or suggestions please feel free to leave them below and I will get back to you soon! Thanks guys and hope you have a great and profitable trading week!