What is hazel feet?
A haramashi is a pattern seen with two candlesticks.
This refers to a shape in which the first price range is large and the second price range falls within that range.
It is called ``Harami'' because it has a small foot inside a large foot.
The meaning of ``Hairy foot''
Bare feet indicate that market momentum may have weakened.
If the market goes up, it is a sign that the buying momentum has stopped. If it appears in a declining market, it is a sign that the selling momentum has stopped. Neither direction has been determined yet.
| Appearance location | way of seeing |
|---|---|
| high price area | Beware of ceiling formation |
| low price range | Expectations for bottoming out |
| flat market price | lack of sense of direction |
How to use it
The basic idea is to wait for the next leg when a stray leg appears.
This is because it is difficult to tell whether you are going up or down just by looking at your legs.
What we want to check is whether the price will break above the high price or below the low price of the barashi bar. After getting lost among the little feet, I see which way it comes out.
Summary
A haramashi is a candlestick pattern that indicates uncertainty in the market.
Rather than buying or selling right away, it is better to use the next candlestick to check the direction. If you find yourself in doubt, don't jump to conclusions.