Harami means pregnant in Japanese
The Harami pattern is the opposite of the Engulfing pattern
The patterns illustrates a mother candle and a baby candle inside the 1st one
- Appears at market tops or bottoms
- Reversal pattern
- 1st candle is a long (mother candle) 2nd candle is small (baby candle)
- 2nd candle can be either color
- 2nd candle size ideally 25% or less of 1st candle
- Baby candle's body is inside the mother's candle body, the shadows can exceed
Bearish Harami Cross / Bullish Harami Cross
- Same criterias as above except the baby candle is a Doji
- More powerful signal than a regular Harami
Three Inside Down / Three Inside Up
- Confirmation of the Harami pattern
- 3 candles pattern
- 1st 2 candles exactly the same as the Harami
- 3rd candle on the bearish side closes lower than the prior candle and on the bullish side closes higher than the previous candle
Below is a chart example of the bearish Harami pattern
