- Reversal
- On price
- Beginner
Marks bullish and bearish harami candle pairs when RSI is in a low or high zone. RSI helps check that the pair follows a push in the opposite direction.
The rules
HIGHER marker
A full bearish candle followed by a bullish candle with a body at most 50% of the first body and fully inside it, with RSI(14) below 40.
LOWER marker
A full bullish candle followed by a bearish candle with a body at most 50% of the first body and fully inside it, with RSI(14) above 60.
A marker appears after the next candle opens and is drawn on the candle that completed the setup. It is a chart observation, not an instruction to trade.
How to read it
There are no lines on the chart; read the candles. A green HIGHER triangle marks the second candle of a bullish harami and a red LOWER triangle the second candle of a bearish harami. RSI thresholds are inputs inside the script.
Indicators used
- Harami candle pair
- RSI (14, 40/60)
Same view with built-in indicators: Add RSI (14) with levels 40 and 60 and spot the harami pair by eye.
Default settings
| First candle minimum body share of range | 0.5 |
|---|---|
| Second candle maximum body share of first body | 0.5 |
| RSI period | 14 |
| Bullish RSI level | 40 |
| Bearish RSI level | 60 |
Every value is an input in the script settings. Platform advice is off by default.
Key points
- A harami is two candles: a large candle and a small opposite-colour candle inside its body.
- The small candle shows the previous move slowing down.
- A bullish harami needs RSI below 40, a bearish harami needs RSI above 60.
- This differs from an inside bar, which compares highs and lows rather than bodies.
- Markers confirm on a completed candle.
- Practise on the Practice balance and look at the trend around each pattern.
Limitations. The article does not give exact size or RSI rules, so the 50% body limits and the 40/60 RSI levels are this script's definition of the pattern. A harami is only a pause and the move may continue in the previous direction. Test on the Practice balance before risking real funds.
Install it in four steps
- Download and inspectDownload one .lua file and open it in a plain-text editor if you want to read it first. If you downloaded the ZIP, extract it.
- Open Chart Analysis → ScriptsIn the IQ Option traderoom, choose the Practice balance, open the chart analysis panel, select Scripts and choose Import script.
- Save and add to chartSelect the downloaded file, review the imported code, choose Save, then use the + control to add it to the chart.
- Change one input at a timeConfirm the default view first. Then adjust periods, levels or colours one setting at a time and note what changes.
Complete source code
The download and this preview resolve to the same reviewed file. SHA-256: 4345fc401d8e0ddcc44dc57b3a3b1c3f2c967d9369184fecdc05dbd404c11a50
-- SPDX-License-Identifier: MIT
-- IQOptionWiki QCS Library
-- IQOW Harami RSI v1.0.0
--
-- A harami is a two-candle pattern: a full candle followed by a small
-- opposite-colour candle whose body sits inside the first candle's body.
-- RSI checks that the pattern appears after a push into an oversold or
-- overbought area.
--
-- HIGHER: candle 1 is a full bearish candle, candle 2 (this candle) is
-- bullish with a body at most 50% of candle 1's body and fully
-- inside it, and RSI(14) is below 40.
-- LOWER: mirror image, with RSI(14) above 60.
--
-- Markers use the previous completed candle: they appear after the next candle
-- opens and are shifted back one bar onto the candle that qualified.
-- Educational chart tool only. It does not place trades, choose an expiry,
-- predict outcomes, or guarantee results. Test on a Practice balance first.
instrument {
name = "IQOW Harami RSI",
short_name = "IQOW HARAMI",
overlay = true
}
input_group {
"1. Candle geometry",
first_body_ratio = input (0.5, "First candle: minimum body share of range", input.double, 0.1, 0.95, 0.05, false),
max_body_ratio = input (0.5, "Second candle: maximum body share of first body", input.double, 0.05, 0.95, 0.05, false)
}
input_group {
"2. RSI",
rsi_period = input (14, "RSI period", input.integer, 2, 100),
oversold_level = input (40, "Bullish harami: RSI below", input.double, 5, 50, 1, false),
overbought_level = input (60, "Bearish harami: RSI above", input.double, 50, 95, 1, false)
}
input_group {
"Display and advice",
signals_visible = input { default = true, type = input.plot_visibility },
advice_enabled = input { default = false, name = "Enable platform advice", type = input.boolean }
}
input_group {
"Colors",
higher_color = input { default = "#25E154", type = input.color },
lower_color = input { default = "#FF6C58", type = input.color },
signal_text_color = input { default = "#FFFFFF", type = input.color }
}
rsi_value = rsi (close, rsi_period)
-- Candle 1 is the previous bar, candle 2 is this bar.
local open_1 = get_value (open [1], nil)
local close_1 = get_value (close [1], nil)
local high_1 = get_value (high [1], nil)
local low_1 = get_value (low [1], nil)
local open_2 = get_value (open, nil)
local close_2 = get_value (close, nil)
local rsi_now = get_value (rsi_value, nil)
local levels_are_valid = oversold_level < overbought_level
local data_is_ready =
levels_are_valid and
open_1 ~= nil and close_1 ~= nil and high_1 ~= nil and low_1 ~= nil and
open_2 ~= nil and close_2 ~= nil and
rsi_now ~= nil
local body_1 = data_is_ready and math.abs (close_1 - open_1) or 0
local range_1 = data_is_ready and (high_1 - low_1) or 0
local body_2 = data_is_ready and math.abs (close_2 - open_2) or 0
local first_is_full = range_1 > 0 and body_1 >= first_body_ratio * range_1
local second_is_small = body_1 > 0 and body_2 > 0 and body_2 <= max_body_ratio * body_1
-- Bullish harami: bearish candle 1, bullish candle 2 with both open and
-- close inside candle 1's body (between its close and open).
local bullish_harami =
data_is_ready and first_is_full and second_is_small and
close_1 < open_1 and close_2 > open_2 and
open_2 >= close_1 and close_2 <= open_1 and
rsi_now < oversold_level
local bearish_harami =
data_is_ready and first_is_full and second_is_small and
close_1 > open_1 and close_2 < open_2 and
open_2 <= close_1 and close_2 >= open_1 and
rsi_now > overbought_level
higher_setup = conditional (bullish_harami)
lower_setup = conditional (bearish_harami)
-- Confirm only a new setup on the previous completed candle.
confirmed_higher = conditional (
get_value (higher_setup [1], false) and
not get_value (higher_setup [2], false)
)
confirmed_lower = conditional (
get_value (lower_setup [1], false) and
not get_value (lower_setup [2], false)
)
if signals_visible then
plot_shape (
confirmed_higher,
"Harami HIGHER",
shape_style.triangleup,
shape_size.small,
higher_color,
shape_location.belowbar,
-1,
"HIGHER",
signal_text_color
)
plot_shape (
confirmed_lower,
"Harami LOWER",
shape_style.triangledown,
shape_size.small,
lower_color,
shape_location.abovebar,
-1,
"LOWER",
signal_text_color
)
end
-- QCS advice is a platform notification state only; it does not place trades.
if advice_enabled and
get_value (confirmed_higher, false) and
not get_value (confirmed_lower, false) then
advise (advice.buy)
elseif advice_enabled and
get_value (confirmed_lower, false) and
not get_value (confirmed_higher, false) then
advise (advice.sell)
else
advise (advice.neutral)
end
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Download all 56 scripts as one ZIP · MIT License, provided “as is”, without warranty. IQOptionWiki is independent of the IQ Option platform operator. Nothing here is investment advice or a guarantee of results.