Before entering the trade, it is best to consider the risk/benefit ratio as well. Where do you place the stoploss? Where is the first resistance and what is your final target? The chart below shows the same bullish harami setup, but i have also drawn an entry, stoploss and different profittargets. in this case for example you could consider to set your stoploss at breakeven once the first target at 1.3R is reached.
Also check the larger timeframe to see if there are important price levels that are not immediately visible on the timeframe on which the pattern occurs (and which may have a major impact as resistance). On the other hand, looking at a smaller timeframe can sometimes result in even a better technical entrylevel with a shorter stoploss and therefore less risk. Remember, these are all things to consider before taking the trade!
Even with a perfect bulish harami signal and all other accompanying conditions to your advantage, not all signals will be successful. Good risk and trade management is by far the most important element to be successful in the long term. Knowing exactly how much to buy, according to the size of your trading account, is at least as important as what or when to buy... Use our unique position sizing tool to do so automatically.
Filtering stocks based on candlestick patterns can be done in the stock screening section under the tab indicators. You'll not only find the harami pattern there, but also numerous other popular candlestick patterns.
The ChartMill Team