Technical Definition
A three-candle bearish reversal pattern where weakening buyers are followed by clear seller confirmation. It is essentially a confirmed Bearish Harami.
Buyers lose momentum, sellers test strength, and then sellers confirm control. This pattern is essentially a Bearish Harami followed by a bearish confirmation candle.
Buyers lose momentum.
Market Psychology
Context
Market in uptrend Buyers are confident Pullbacks are shallow
Continuation
Buyers push prices higher decisively Bullish sentiment remains strong
Hesitation
Buyers hesitate Sellers begin testing resistance Volatility contracts within prior range
Confirmation
Sellers enter aggressively Buyers retreat or get trapped Confidence shifts toward downside
Pattern Anatomy
First Candle (Bullish)
Large bullish real body, confirms strong buying pressure.
Second Candle (Bearish Inside)
Small bearish real body completely inside the first candle, indicates weakening buying pressure.
Third Candle (Bearish Confirmation)
Strong bearish candle closing below the low of the second, confirming seller dominance.
Pattern Rules
Appears after an uptrend
Reversal context is required.
First candle is bullish and large
Shows initial buying strength.
Second candle is bearish and smaller
Shows contraction/harami.
Second candle body fully inside first
Harami structure.
Third candle is bearish
Confirmation candle.
Third candle closes below second candle low
Confirms the reversal.
Signal Confirmation
- Strength and size of the third candle
- Price acceptance below the breakdown level
- Alignment with resistance zones
- Weakening market structure