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Harami cross is a moderately reliable candlestick pattern which indicate the reversal of existing trend. Harami cross resembles harami, the only difference is that in harami cross the second day candlestick is a doji (in harami, it is a small bodied candlestick). The doji candlestick is completely lies inside the real-body of first day candlestick. There are both bullish and bearish versions of harami cross candlestick pattern.

Bullish harami cross formation occurs at the bottom of a downtrend and indicate the beginning of an uptrend. This formation includes a long bearish (black or colored) candlestick on first day and a doji on second day.

Bearish harami cross formation occurs at the top of an uptrend and indicate the beginning of a downtrend. This formation includes a long bullish (white/colorless) candle on first day followed by a doji on second day.

The formations of doji candlestick in both patterns indicate market uncertainty resulting in low trading volumes. Harami cross pattern is considered more reliable than harami pattern. The reliability increases with decrease in trading volume and shortening of shadows. For both bullish and bearish harami cross confirmation is suggested which can be a bullish candlestick or a large upward gap or higher close on third day for bullish harami cross; and a bearish candlestick or large downside gap or lower close on third day for bearish harami cross.

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