Harami

A harami is a two-candle pattern made up of a long candlestick and a shorter candlestick whose high is lower than the high of the first candlestick, and whose low is higher than the low of the first candlestick. When this pattern occurs, the harami looks like a candle carrying a pregnancy.

There are two varieties of the harami pattern. There is a bullish harami which is made up of a bullish Day 1 candle and a smaller bearish Day 2 candle. When the bullish harami occurs in a downtrend, it is a bullish reversal candlestick pattern which is moderately reliable and tells the trader that the trend is about to change.

Bullish Harami pattern

There is also a bearish harami which is made up of a bearish Day 1 candle and a bullish Day 2 candle. When the bearish harami occurs at the top of an uptrend, it is a bearish reversal candlestick pattern which is moderately reliable and tells the trader that the uptrend is about to end.

Bearish Harami pattern