Technical Definition
A three-candle bullish reversal pattern where weakening sellers are followed by clear buyer confirmation. It is essentially a confirmed Bullish Harami.
Sellers lose momentum, buyers test strength, and then buyers confirm control. This pattern is essentially a Bullish Harami followed by a bullish confirmation candle.
Sellers lose momentum.
Market Psychology
Context
Market in downtrend Sellers are confident Buyers are defensive
continuation
Sellers push prices lower decisively Downtrend appears intact
Contraction
Selling pressure contracts Buyers test demand Price stabilizes within prior range
Confirmation
Buyers enter aggressively Sellers retreat Confidence shifts toward upside
Pattern Anatomy
First Candle (Bearish)
Large bearish real body, confirms strong selling pressure.
Second Candle (Bullish Inside)
Small bullish real body completely inside the first candle, indicates weakening selling pressure.
Third Candle (Bullish Confirmation)
Strong bullish candle closing above the high of the second, confirming buyer dominance.
Pattern Rules
Appears after a downtrend
Reversal context is required.
First candle is bearish and large
Shows initial selling strength.
Second candle is bullish and smaller
Shows contraction/harami.
Second candle body fully inside first
Harami structure.
Third candle is bullish
Confirmation candle.
Third candle closes above second candle high
Confirms the reversal.
Signal Confirmation
- Strength and size of the third candle
- Price holding above the breakout level
- Alignment with support zones
- Improving market structure