Bearish Harami Entries with Pip-Based Profit and Stop Levels

Summary

This script encodes a bearish Harami pattern as a short-entry setup. It looks for a sufficiently large current candle whose real body is smaller and contained within the prior candle’s larger bullish real body, with the current candle moving downward. A minimum body-size input filters out smaller patterns, and the pattern is marked on the chart with a color change.

When the pattern is detected, the script enters a short position. It exposes take-profit and stop-loss distances in pips, and closes the position when the pattern condition no longer applies or either price threshold is reached. The document provides the pattern definition and implementation, but reports no backtest results, market selection, or comparison against a benchmark. It is presented for educational use, so the setup alone does not establish predictive value; its behavior and pip settings may need adaptation to the instrument and testing environment.

Key ideas

• A bearish Harami is identified when a smaller bearish real body sits inside the preceding larger bullish real body.
• The setup filters patterns using a minimum candle-body size expressed in pips.
• A qualifying pattern triggers a short entry, with configurable pip-based take-profit and stop-loss levels.
• The document supplies no performance results or evidence that the pattern predicts profitable reversals.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.