ACCICB bought many stocks on a Harami candlestick only to discover that it is actually a 'hai'rami when the stock went down further. Hai in mandarin means to inflict woe onto others thus you can see why I renamed the harami to 'hai'rami for ACCICB.
Harami is a two Japanese candlestick pattern and it is a reversal pattern thus you can imagine ACCICB's reaction when he bought it on the downtrend but it went southwards or sideways instead of going up up and away. I won't go into the details of the harami pattern because there's much information out there so I shouldn't be singing the same tune.
The best way to get better at TA is through practice I would say although some people I know may have a gift for TA. Its like they can see things that we can't! Especially with variations of harami patterns occurring in charts, it becomes an art to differentiate your harami from your 'hai'rami.
You can imagine how many times ACCICB talks about the 'hai'rami as the harami doesn't preclude the possibility that market would resume its downward course as it simply relays a condition about the market that at the time of harami, downward pressure had subsided. However the harami could be a signal that the prior intra-day trend might be over and could be used to cover shorts.
I've yet to buy or sell on a variation of a harami but with a classic harami pattern and with other indicators that are in favor, you can pretty much be certain about the positive benefits of the harami pattern.
