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When a Harami candlestick pattern happens during an uptrend or a downtrend, it is interpreted as what?

a) A potential trend reversal
b) A continuation of the trend
c) Market consolidation
d) Market uncertainty

User Yuli Chika
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1 Answer

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Final answer:

The Harami candlestick pattern during an uptrend or a downtrend is interpreted as a potential trend reversal.

Step-by-step explanation:

When a Harami candlestick pattern happens during an uptrend or a downtrend, it is interpreted as a potential trend reversal. The Harami pattern consists of two candlesticks, where the first candlestick is larger and the second candlestick is contained within the range of the first candlestick. This pattern suggests that the momentum of the current trend might be weakening and a reversal in the direction of the trend might occur.

User Nschmidt
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