The Ultimate Guide to Bearish Harami Candlestick Patterns

Last updated: January 4, 2024

Bearish Harami Pattern

Harami candlestick patterns are a type of reversal pattern, where there are bullish and bearish equivalents. If the second candle is a doji, this pattern is classified as a harami cross.

Similar to the engulfing pattern but in reverse, with the bearish harami pattern, a candle with a small real body falls within the extended body of the preceding candle, indicating that the strongly bullish market movements seen the previous day are running out of steam.

Chart

General Identification & Interpretation

Steve Nison is credited with bringing Japanese candlestick charting to the West. In his book "Japanese Candlestick Charting Techniques" he describes bearish harami patterns with the following characteristics:

Typical characteristics

• First candlestick is an unusually long green candle
• Second candlestick has a small real body with opening and closing prices within the body of the first candlestick
• The candles don't necessarily have to be opposing colors

Examples of use as a trading indicator

• Potential bearish reversal signal after an uptrend

Other interpretations

• If the second candle is a doji, this pattern is classified as a harami cross

More for beginners

Check out our quick start guide to candlestick charting for more information if you are new to candlestick charting!