What is Harami Pattern?

 The Harami pattern is a two-candlestick chart pattern used in technical analysis to signal a potential trend reversal in the price of an asset. It originates from Japanese candlestick charting techniques.

🟡 Meaning of "Harami"

The word "Harami" means "pregnant" in Japanese, which is a metaphor for the appearance of the pattern — the second candlestick is "contained" within the body of the first one, like a baby inside the mother.

📊 Structure of the Harami Pattern

1. Bullish Harami (Potential Reversal from Downtrend to Uptrend)

  • First candle: Long red (bearish) candle.

  • Second candle: Small green (bullish) candle within the body of the first candle.

  • Interpretation: Selling pressure is weakening, and a bullish reversal might occur.

  •  Example.1:



      Example.2:




2. Bearish Harami (Potential Reversal from Uptrend to Downtrend)

  • First candle: Long green (bullish) candle.

  • Second candle: Small red (bearish) candle within the body of the first candle.

  • Interpretation: Buying pressure is weakening, and a bearish reversal might occur.

    Example.1:


    Example.2:





✅ Key Features

  • The second candle must be completely within the real body of the first candle.

  • The second candle can be of any color, but reversal patterns are stronger when it’s the opposite color.

  • Often more reliable when confirmed with volume or other indicators.

📈 When to Use

Traders look for the Harami pattern at the end of a trend:

  • After a downtrend, a bullish Harami can indicate the start of an upward move.

  • After an uptrend, a bearish Harami can signal a possible decline.

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