Harami Pattern is a free indicator for mt4 (Metatrader 4) that finds and displays Harami candlestick patterns on the activity chart.
The indicator appears in the main MT4 chart window as colored blue and red signal arrows.
Trade Logic
- A blue arrow represents a bullish Harami Pattern.
- A red arrow represents a bearish Harami Pattern.
The Harami Pattern indicator can be used to find high probability trade entries and exits, or to confirm buy & sell trade setups issued by other trading systems or strategies.
For scalping purposes, the indicator tends to work the best during the London and American trading sessions.
The indicator works equally well on all assets (Forex, CFD stocks, Indices, Cryptocurrencies, Commodities,..) and shows promising results if used correctly.
Free Download
Download the “Harami.mq4” indicator for MT4
Indicator Chart (EUR/USD M15)
The example chart below displays the Harami Pattern mt4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy to trade with the Harami Pattern Forex indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Candlestick pattern
Does the indicator repaint? No.
Day Trading Strategy: Harami Pattern + ADX Trend MA (MT4)
This day trading strategy combines the Harami Pattern Indicator and the ADX Trend MA Indicator to identify high-probability intraday trades.
The Harami Pattern Indicator detects bullish and bearish candlestick formations, displaying a blue arrow for bullish patterns and a red arrow for bearish patterns.
The ADX Trend MA Indicator confirms trend direction: enter a buy when the blue signal line crosses above the orange line and a sell when the blue line crosses below the orange line.
This combination works best on 5-minute to 1-hour charts and is suitable for traders aiming to capture intraday trend reversals.
Buy Entry Rules
- Wait for a blue arrow on the Harami Pattern Indicator indicating a bullish pattern.
- Confirm a buy trade when the blue line on the ADX Trend MA crosses above the orange signal line.
- Enter the buy trade at the close of the confirming candle.
- Set the stop loss below the recent swing low or nearby support level.
- Set take profit at a 1:2 reward-to-risk ratio or exit if the ADX blue line crosses below the orange line or a red Harami arrow appears.
Sell Entry Rules
- Wait for a red arrow on the Harami Pattern Indicator indicating a bearish pattern.
- Confirm a sell trade when the blue line on the ADX Trend MA crosses below the orange signal line.
- Enter the sell trade at the close of the confirming candle.
- Set the stop loss above the recent swing high or nearby resistance level.
- Set take profit at a 1:2 reward-to-risk ratio or exit if the ADX blue line crosses above the orange line or a blue Harami arrow appears.
Advantages
- Combines candlestick reversal patterns with trend confirmation for higher-probability entries.
- Visual signals make it easy to identify bullish and bearish setups.
- ADX Trend MA confirmation reduces the risk of entering trades against the prevailing trend.
- Works across multiple currency pairs and intraday timeframes.
Drawbacks
- May produce delayed entries if waiting for both Harami confirmation and ADX crossover alignment.
- Exotic pairs may generate inconsistent results due to irregular volatility.
- High-impact news events can lead to rapid reversals and hit stop losses.
Case Study 1
On the EUR/USD 30-minute chart, a blue Harami arrow appeared, and the ADX Trend MA blue line crossed above the orange line.
A buy trade was entered at 1.1880, with a stop loss at 1.1855 and a take profit at 1.1930. The position hit its take-profit target in just three hours, securing a gain of 50 pips.
Case Study 2
On the GBP/JPY 1-hour chart, a red Harami arrow appeared, and the ADX Trend MA blue line crossed below the orange line.
A sell trade was entered at 149.30, with a stop loss at 149.65 and a take profit at 148.55.
Within four hours, the trade achieved its target and booked a 75-pip gain.
Strategy Tips
- Confirm with higher time frames — only take Harami signals that align with the trend on a larger time frame to filter false entries.
- Wait for candle close — enter after the candle closes above/below the ADX crossover to validate the signal.
- Combine with support/resistance — look for Harami patterns at key support or resistance levels to increase accuracy.
- Use ATR-based stops — set stop-loss levels based on the current volatility (ATR) instead of fixed pips.
- Stagger take-profits — take partial profits at the first swing level and trail the rest with a stop tied to the ADX Trend MA.
- Test across pairs — try this setup on volatile pairs like GBP/JPY, USD/CAD, or AUD/JPY for larger moves.
