Harami

“Harami” means “”pregnant”” in Japanese. In Trading, the Harami candlestick pattern consists of two candles, could be a long white candle followed by a small black candle, or a long black candle followed by a small white candle. The Harami Pattern is considered either bullish or bearish based on its shape.

In Bearish Harami, a long white candle is followed by a small black candle, and the opening and closing prices of the black candle on Day2 must be contained within the body of the white candle on Day1. It indicates prices may soon reverse to the downtrend.

In Bullish Harami, a long black candle is followed by a small white candle, which is the opposite of Bearish Harami. It indicates prices may soon reverse to the uptrend.