Harami Pattern Signals with Optional MA, RSI, and MACD Filters

Summary

This document describes a chart indicator that identifies Harami candlestick patterns and optionally filters its signals with a moving average, RSI, or MACD. Its default setup uses the Harami pattern alone; the author says the added candle made signals in the trend direction convincing, but gives no test design, market, or performance figures to support that assessment.

The filters can be enabled independently or combined, and the document suggests evaluating each on its own for best results. An optional setting also requires the candle before the pattern to match the direction of the pattern’s first candle. Inputs specify how many chart periods to process, whether to issue alerts, and indicator settings such as the moving-average type and price, RSI thresholds, and MACD periods. These are configuration details rather than evidence of a robust strategy; no entry, exit, position-sizing, or risk rules are supplied.

Key ideas

• The indicator detects Harami candlestick patterns, with the pattern alone as its default configuration.
• Moving-average, RSI, and MACD filters can be enabled separately or combined.
• An optional rule checks whether the candle before the pattern matches the first pattern candle’s direction.
• The document reports a favorable impression of trend-direction signals but provides no empirical validation or trading rules.

Tags

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