Harami (Bullish)
A bullish harami is a two-candle pattern where a large bearish candle is followed by a smaller bullish candle whose entire body fits within the body of the first candle. The Japanese word "harami" means "pregnant" — the first candle is the "mother" and the small candle is the "baby" inside. It signals that selling pressure may be weakening and a reversal could follow.
Bullish Harami candlestick pattern diagram
Pattern Anatomy
- Candle 1 (Mother): A large bearish (red) candle with a significant body — sellers were firmly in control
- Candle 2 (Baby): A small bullish (green) candle whose body opens at or above the first candle's close and closes at or below the first candle's open
- The baby candle's entire body must fit within the mother candle's body
- The wicks of the baby candle can extend beyond the mother — only bodies matter
- The smaller the baby candle relative to the mother, the more it signals indecision
How to Interpret
- Most significant after a sustained downtrend — signals weakening selling pressure
- Signals weakening selling pressure, not yet a confirmed reversal
- Needs confirmation from the next candle closing higher
- Best when appearing at known support levels
- Volume decrease on the baby candle is typical — lower participation signals indecision
How Engulfy Detects the Harami (Bullish)
- Previous candle must be bearish (Close < Open)
- Current candle must be bullish (Close > Open)
- Current candle’s Open must be ≥ the previous candle’s Close (the lower of prev’s body edges)
- Current candle’s Close must be ≤ the previous candle’s Open (the upper of prev’s body edges)
- This ensures the current candle’s body is entirely contained within the previous candle’s body
Expert References
- Steve Nison, Japanese Candlestick Charting Techniques — introduced the harami pattern to Western traders; the name comes from an old Japanese word for pregnancy
- Thomas Bulkowski, Encyclopedia of Candlestick Charts — found the bullish harami acts as a bullish reversal approximately 53% of the time — one of the less reliable single patterns, but it improves significantly when combined with other confirmation signals
Controversy & Limitations
- Relatively weak standalone signal at approximately 53% reliability
- The pattern is essentially the opposite of a bullish engulfing — a small candle inside a large one shows indecision, not decisiveness
- Many traders wait for a third confirmation candle, forming a "Three Inside Up" pattern for higher reliability
- Some debate whether the baby candle's color matters — Engulfy requires a bullish baby candle for a bullish harami