Question: What is the strategy when Harami of Candlestick chart appears on MT4?
Here is an example of Harami with RSI filtering and SMA(20) as Take Profit Target, when during the course of a decline the appearance of a Harami pattern filtered by RSI at the oversold area.
One could consider buying when the next candle exceeds the high price of the long black candle.
Place a protective stop loss at the bottom of the Harami pattern.
You can consider the following actions, bearing in mind that a Take-Profit strategy is heavily dependent on the trading profile of each individual.
- Close the position when the price reaches the SMA(20).
- 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(20). - Other combinations may be applied.