The Candlestick Trading Bible - Tweezers and Harami Patterns

Vocabulary terms and definitions covering Tweezers and Harami candlestick patterns based on the lecture notes.

Tweezers top

A bearish reversal pattern seen at the top of an uptrend.

Tweezers bottom

A bullish reversal pattern seen at the bottom of a downtrend that indicates buyers are coming to reverse the market direction.

Harami pattern

A candlestick pattern meaning "pregnant" in Japanese consisting of a large mother candle followed by a smaller candle called the baby.

Mother candle

The first large candle in a Harami pattern (also known as an inside bar) that precedes a smaller candle.

Baby (Harami)

The second, smaller candle in a Harami pattern whose body is totally covered by the previous mother candle.

Bullish harami

A pattern occurring at the bottom of a downtrend indicating that selling power is no longer in control and price is starting to consolidate.

Bearish harami

A pattern occurring at the top of an uptrend indicating that the buyer's domination is over and the beginning of a downtrend is possible.

Inside bar

Another term for the Harami pattern where a smaller body closes inside of the first bigger candle.

Indecision period

A state where the market is consolidating, and buyers and sellers are not in control, often occurring during the formation of a Harami candle.

Psychology (Candlestick)

The most important element of candlestick formation which helps a trader understand what happened in the market and predict future price movements.