In this video we're going to take a look at the Hiromi.
There are two versions is a bullish on the bearish and the Rami is well Hiromi is a Japanese word for
pregnant woman and therefore that's your first hint that this is a too kind of sick pattern.
And essentially what we're looking at is a candlestick that's a little bit bigger.
The first one that is followed by the baby.
That's the mother and the baby.
You'll notice that there's a gap and a tightening of range.
So if it is a bullish Hiromi what you'll see is a downtrend and then on this last day will gap up and
we'll just kind of tighten up a little bit and shows that perhaps the market at the very least is running
out of momentum or could be trying to accumulate buyers.
And then you get a move higher and that is a bullish Hiromi the bearish one the exact same opposite
is true or rallying.
We get a continuation candle and then we get a gap lower in the market just hangs there.
There's no attempt to try to break it out to the upside.
So then it becomes bearish once we flip over and roll back on the other side of the hill as it were.
They don't happen all the time but by their very nature they tend to happen on daily in higher time
frame charts because of course you need the gap.
So you can't necessarily expect them as an intraday trader.
I mean it's not this can't get them it's just that it's extraordinary were extraordinarily rare for
that to happen so here on the rise and we have a red candle after a nice selloff followed by a gap in
a tighter and smaller candlestick and then a break to the upside and that is a bullish Hiromi.
The trigger is once you break the top or in the case of a bearish when the bottom of the mother the
stop loss goes on the other side of the candlestick formation and you just simply manage your trade
as per usual this one makes a lot of sense to me at least because
you can see we are right here where we had seen support previously the classic signal no reason to be
overly concerned especially when you break 50 than you get the psychological break and you continue
to go much higher here in the QS we have one at the top of a very stretched out run you can see that
we had been basically parabolic had been screaming for some type of sell off you can see that this level
not only mattered here and this bearish drama that kicked off a pretty significant move to the downside
but later on it had been important a couple of times as well.
Very interesting how the market repeats See nothing's really random when you start looking at it like
this both of these candlestick patterns were very useful and they both worked out quite well.
You don't see these a lot and keep in mind that so here's an example here.
Your first instinct might be well this is a bullish Hiromi but this Wick went well below the mother
candlestick so it's not a bullish Hiromi.
This is actually a hammer which of course is a variable a sign.
That being said it did work out but you have to be careful you need to make sure that you are completely
contained within the mother to be a true Hiromi.