Bearish Harami Pattern Rules for Short Entries

Summary

This document describes a short-entry strategy based on a two-candle bearish Harami. The prior candle must be bullish and exceed a minimum body size; the following candle must be bearish, have a smaller body, and fit within the prior candle's real body. When the conditions are met, the strategy opens a short position. The listed parameters set take-profit and stop-loss distances in pips, along with a minimum candle-body size. The published backtest settings use BTC/USDT futures over several days in November 2023, but no numerical performance evidence is supplied.

The document identifies false patterns, high volatility, and limited historical testing as risks, and suggests adding volume or MACD filters or refining exits. Its source code uses the pattern rules to establish a short position, but its exit checks depend on a stored pattern price and compare price movements against the configured pip amounts. The text's positive claims about backtest quality are unsupported by reported results, and the short test window offers little evidence about performance across different market conditions.

Key ideas

• A bullish candle with a large body must precede a smaller bearish candle contained within its real body.
• The pattern triggers a short position, with configurable take-profit and stop-loss distances.
• The published BTC/USDT futures test spans only a few days and reports no performance metrics.
• False patterns, volatility, and insufficient testing are identified as limitations.

Tags

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