Bearish Harami is a two-day candlestick pattern with a small, red-bodied candle that is entirely encompassed within the range that was once a green-bodied candle. This pattern is usually preceded by an upward trend and indicates a reversal in a bull price movement.
Traditionally, this candlestick pattern is recognized in conjunction with a specific trend direction, i.e. it might be important for the pattern if the price has been generally going up or down. The ‘Detect Trend Based On’ option allows you to specify which of the following methods to use to detect the trend:
By comparing two different SMAs, the 'SMA50, SMA200' option only detects stronger trends. When the trend is weak and the condition above is not met, no patterns will be detected. In contrast, the 'SMA50' option will also detect weaker trends.