Candlestick Harami

The word Harami means "pregnant" in Japanese. The candlestick Harami pattern is a doji reversal pattern., preceded by a long white real body. The pattern is considered either bullish or bearish based on the following:

A bearish Harami happens when there is a large bullish candle on first day followed by a smaller bearish or bullish candle on second day. An important aspect to remember is that the in the bearish Harami, the prices gapped down on Day 2 and were unable to move higher back to the close of Day 1. This shows a sign og high uncertainty in the market.

When there is a large bearish candle on first day followed by a smaller bearish or bullish candle on second day, you see a bullish Harami. The most important point to note here is that the prices gapped up on Day 2 and price was held up and unable to move lower back to the bearish close of Day 1.

He is a major reversal pattern preceded by a long white real body. The Bearish is more important than a regular Bearish Harami Pattern. The market here is characterized by uptrend and followed by a long white candlestick in the first day. It is a sign of disparity about the market’s health.