The Harami forex indicator for MetaTrader 4 is just a simple Harami bar finder. I’ve found it to be useful on the 1 Hour charts and seems to yield over 45 – 85 pips per trade indication.
The Harami is essentially a mixture of to candlestick, the first features a candle with a large range and the second candle has its range completely engulfed in the first candle.
A bullish harami has the first candle as bearish, while the second one is bullish, while a bearish harami has the first candle as bullish, while the second one is bearish.
Harami is a Japanese term for baby. The key to understanding the Harami is to have the second candle close within the body of the previous candle. In a bid to add validity to the suggestive pattern, the second candle should close above half the traded value of the body of the first candle.
The Harami indicator spots bearish/bullish harami via the use of a red and an aqua colored arrow. In the attached chart, I had to increase the “Width” of the arrows to “4” to make them more visible on the activity chart.
Once a bullish harami is spotted, the Harami indicator pins an aqua colored upward pointing arrow below the candlesticks and by so doing the trader is able to identify the bullish harami without stress. The same goes for a bearish harami, but in this case a red downward pointing arrow is pinned just above the formation i.e. the first candle and the second candle formation.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (MinMasterSize, MazMasterSize, MinHaramiSize, MAxHaramiSize, MaxRatioHaramiToMaster, MinRatioHaramiToMaster, ArrowOffSet), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month