Technical Analysis · Bullish Reversal
Bullish Harami
A Bullish Harami is a two-candle reversal pattern where a small bullish candle forms entirely within the body of the preceding large bearish candle.
Bullish candle
Bearish candle
Highlighted = the pattern itself
Category
Bullish Reversal
Signal
Buy
Reliability
★★★★★
Candles Involved
2
What does it signal?
The sudden contraction in range shows selling momentum stalling abruptly, often the first sign that a downtrend is losing steam.
How to identify a Bullish Harami
- Forms after a downtrend.
- First candle is a long bearish candle.
- Second candle is bullish and small, with its entire body contained inside the first candle's body — the opposite of an Engulfing pattern.
How to trade a Bullish Harami
- Considered weaker than an Engulfing pattern — many traders wait for a break above the first candle's high before acting.
- Stop-loss is typically set below the Harami's low.
Educational only — not financial advice. Combine any candlestick pattern with broader market context, risk management, and your own trading plan.
FAQ
Common questions
No — Harami is generally viewed as a weaker signal since it shows contraction rather than the decisive takeover seen in an Engulfing pattern.
Traders often watch for a 'Harami Cross' (a doji as the second candle, even more indecisive) or a confirming bullish candle before entering.
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