Harami

Description

Harami translates to "pregnant." The Harami pattern is a candlestick with a long real body followed by a candlestick with a smaller real body:

The Harami is actually the converse of the Engulfing pattern. However, real body color is not important in the Harami pattern.

If the second bar is a Doji, a Harami Cross emerges. The Harami Cross is also known as the Petrifying Pattern.

Harami indicate that existing momentum is waning.

Formula

Harami(INPUT, Stringency=7, LRRange=10, LRType=3, LongForm=2, DojiPercentage=10)=begin

retval = NONUM

  targetBar = 0

  cHigh = GetPrice($1, BATE_HIGH, targetBar, 0)

  cLow = GetPrice($1, BATE_LOW, targetBar, 0)

  pHigh = GetPrice($1, BATE_HIGH, (targetBar + 1), 0)

  pLow = GetPrice($1, BATE_LOW, (targetBar + 1), 0)

  if RealBodyHigh($1, targetBar) < RealBodyHigh($1, (targetBar + 1)) AND RealBodyLow($1, targetBar) > RealBodyLow($1, (targetBar + 1)) then begin

    if Stringency >= 7 then retval = '7'|clr_gray|arrow|vertical|ftiny

    if abs(RealBodyLen($1, targetBar)) < Abs(RealBodyLen($1, (targetBar + 1)) / 2) then begin

      if Stringency >= 6 then retval = '6'|clr_gray|arrow|vertical|ftiny

      if (BlackBody($1, targetBar) AND WhiteBody($1, (targetBar + 1))) OR (WhiteBody($1, targetBar) AND BlackBody($1, (targetBar + 1))) then begin

        if Stringency >= 5 then retval = '5'|clr_gray|arrow|vertical|ftiny

        if NewHigh($1, LRRange) OR NewLow($1, LRRange) then begin

          if Stringency >= 3 then retval = '3'|clr_gray|arrow|vertical|ftiny

          if cHigh <= RealBodyHigh($1, (targetBar + 1)) and cLow >= RealBodyLow($1, (targetBar + 1)) then begin

            if Stringency >= 2 then retval = '2'|clr_gray|arrow|vertical|ftiny

            if LongForm($1, (targetBar + 1), LongForm) then begin

              retval = 'Harami'|clr_black|arrow|vertical|ftiny

              if Bullish($1, targetBar, LRRange, LRType) == TRUE OR Bullish($1, (targetBar + 1), LRRange, LRType) == TRUE then retval = 'Harami'|clr_black|arrow|vertical|ftiny

              if Bearish($1, targetBar, LRRange, LRType) == TRUE OR Bearish($1, (targetBar + 1), LRRange, LRType) == TRUE then retval = 'Harami'|clr_black|arrow|vertical|ftiny

              if DojiForm($1, targetBar, DojiPercentage) == TRUE then begin

                retval = 'Harami Cross'|clr_black|above|vertical|arrow|ftiny

              end

            end

          end

        end

      end

    end

  end

  retval

end

Parameters

INPUT

The INPUT directive makes this formula available as a Formula Overlay. INPUT refers to the instrument in the chart.

Stringency

The Stringency argument is used by nearly all candlestick overlays. It controls how many tests must pass in the evaluation of a Harami. The lower the number, the more strict the interpretation.

The Stringency argument is an overlay parameter. You can adjust it using the Parameters dialog. The default is 7.

LRRange

The Harami overlay uses the LR() function with either a continuous or quadratic calculation to determine how the market is trending. The LRRange (Linear Regression Range) parameter is the number of points in the Linear Regression calculation. The default is 10.

LRType

The LRType parameter has two possible settings: 2 and 3, or continuous linear regression and quadratic linear regression, respectively. The default is 3, or quadratic.

LongForm

The LongForm is a percentage used to validate a long real body. If the move from open to close exceeds the percentage in this parameter, a candlestick has a long real body. The default is 2, or two percent.

Return Value

The return value is a string plot and varies depending on the value of the Stringency parameter.  The lower the number, the stronger the pattern.

This nuetral pattern is rendered in gray above the candlestick.

The string plot for a fully qualified Harami is "Harami" rendered in black above the candlestick. This overlay is capable of detecting the Harami Cross pattern, which is rendered "Harami Cross" in black above the candlestick.

Examples

Comments

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