Harami

Harami means “pregnant” in Japanese. The first candlestick is seen as the “mother” with a large real body that completely enclosing or embodies the smaller second candlestick, creating the appearance of a pregnant mother.The second candle may appear as a Spinning Top or a Doji.

The Harami candlestick pattern comes in two different forms:

Bullish Harami: A bullish reversal pattern (which occurs after a downtrend). Price is an established downtrend. The first candle is a large bearish candle. The second candle is a smaller bullish candle. When the second candle opens, price gaps up after the first candle but its body is contained within the body of the first candle.

Bearish Harami: A bearish reversal pattern (which occurs after an uptrend). Price is an established uptrend. The first candle is a large bullish candle. The second candle is a smaller bearish candle. When the second candle opens, price gaps down after the first candle but its body is contained within the body of the first candle.