Bullish Harami and Bearish Harami

Harami is a candlestick indicator which marks the reversal or sidewise movement of an existing trend. The Japanese word Harami means pregnant, and the indicator is sometime known as pregnant candle. Harami candles are found on daily charts and can be found both at the end of bullish and bearish trends. They are easy to identify and mostly favor swing traders trading stocks and forex currencies.


Bearish Harami candle indicates the end of an uptrend. It forms when a smaller candlestick is located within the range of previous day’s large candlestick in a bullish trend. The smaller the second (daughter) candlestick, the more is the probability of a trend reversal. Also the bearish harami indicator is more reliable when the first (mother) candlestick is white (bullish) and the daughter candlestick is black (bearish).

Bullish harami candle indicates the end of a downtrend. It forms when a smaller candlestick is located within the range of previous day’s large candlestick in a bearish trend. The smaller the daughter candlestick the more is the probability of a trend reversal. Bullish harami indicator is more powerful when the large mother candlestick is black (bearish) and daughter candlestick is white (bullish). Many traders take this as a good opportunity to buy stocks.

Harami candlesticks are not considered among most reliable indicators. But they are useful trend indicators when used in conjunction with other trend confirming tools.

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