Combining Engulfing, Harami, and Harami Cross Candlestick Signals

Summary

This short-term strategy combines three two-candle patterns: engulfing, harami, and harami cross. It classifies each bar by whether it rose, fell, or closed unchanged, then compares candle bodies and ranges to detect bullish or bearish patterns. Traders can enable long or short entries, choose which patterns to use, and restrict trading to a date range. When a signal opposes an open position, the strategy closes that position before entering in the new direction.

The document describes the rules and includes source logic and published backtest settings for BTC/USDT futures, but gives no performance results. It presents combining patterns as a way to corroborate signals, while acknowledging that pattern thresholds require tuning and signals may miss broader trend reversals. The source also includes a reversal-related exit condition and configurable direction controls; these details do not establish that risk is controlled in practice. The authors suggest adding stop losses or trend indicators and testing parameters across markets, but provide no validation for those improvements.

Key ideas

• The strategy detects bullish and bearish engulfing, harami, and harami cross candle patterns.
• Users can choose which patterns and trade directions to enable and can restrict entries by date.
• An opposing signal closes an existing position before the strategy opens in the signal direction.
• The document reports no backtest performance, and pattern signals may fail or miss broader reversals.

Tags

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