The Ultimate Guide to Bullish Harami Candlestick Patterns
Last updated: January 4, 2024
Bullish 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, a candle with a small real body falls within the extended body of the preceding candle, indicating that the strongly bearish 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 bullish harami patterns with the following characteristics:
Typical characteristics
First candlestick is an unusually long red 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 bullish reversal signal after a downtrend
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!