Technical Definition
A two-candle bullish reversal pattern where a small bullish candle is completely contained within the real body of a preceding large bearish candle.
Sellers were strong, but their strength suddenly shrinks, and buyers begin to stabilize price. The word Harami means "pregnant" in Japanese, symbolizing a large candle followed by a smaller one, indicating loss of momentum.
Selling pressure is weakening.
Market Psychology
Context
Market is in downtrend Sellers are confident Bearish momentum is strong
Strength
Sellers push prices lower decisively Negative sentiment dominates
Contraction
Selling pressure fades Buyers step in cautiously Volatility decreases
Stabilization
Sellers fail to push further Buyers gain confidence Market sentiment starts stabilizing
Pattern Anatomy
First Candle (Bearish)
Large bearish real body, shows strong selling pressure.
Second Candle (Bullish)
Small bullish real body, completely inside the first candle's body range.
Size Contrast
Second candle is smaller, not larger - showing momentum contraction.
Pattern Rules
Appears after a decline
Reversal context is required.
First candle is large and bearish
Shows strong selling momentum.
Second candle is bullish and smaller
Shows weakening selling pressure.
Second candle's body fully contained within first
Demonstrates momentum contraction.
Clear size contrast between candles
Emphasizes the shift from expansion to contraction.
Signal Confirmation
- A bullish candle after the Harami
- Price breaking above the Harami high
- Alignment with support zones
- Improving market structure