Bullish Harami Candlestick Pattern and Backtest Rules
Summary
The document presents a long-only backtest built around the bullish Harami, a two-candle reversal pattern. The first candle has a relatively large bearish body; the following bullish candle has a smaller body contained within the first candle’s body. The script marks qualifying bars and enters a long position when the pattern meets its minimum body-size condition. It uses configurable take-profit and stop-loss distances to end the position.
The document explains the pattern but provides no backtest results, market, timeframe, or evidence that the rules are profitable. Its code is an educational example, and the stated pip-based thresholds may need adjustment for the instrument being tested. The implementation also appears to reset its internal position-price state when either threshold is reached, so readers should verify how entries and exits behave in their chosen platform before relying on the results. The pattern description alone does not establish a reliable reversal signal.
Key ideas
- A bullish Harami pairs a large bearish candle with a smaller bullish candle contained within its real body.
- The script uses a minimum candle-body size to filter qualifying patterns.
- A qualifying signal opens a long position, with configurable profit and loss thresholds.
- The document supplies no performance results or market-specific validation.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.