Here is an example of strategy when you see the appearance of a Harami pattern filtered by RSI at the overbought area, during the course of a rally.

Consider selling when the next candle falls below the low price of the pattern.

Consider placing a protective stop loss at the top of the Harami pattern.

Take Profit strategy is heavily dependent on the trading profile of each individual:

  1. Close the position when the price reaches the SMA(50).
  2. Close 50% of the position when price travels 100% the length of the Harami pattern then close the remaining 50% when price reaches the SMA(50).
  3. Other combinations may be applied.
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