Bearish Harami Pattern

Bearish Harami Pattern is a two-candlestick pattern composed of a small red real body contained within a prior relatively long green real body. “Harami” is an old Japanese word for “pregnant”. The long white candlestick is “the mother” and the small candlestick is “the baby”.

This pattern is a sign of a disparity about the market’s health. Bull market continues further confirmed by the long green real body’s vitality but then we see the small red real body which shows some uncertainty. This shows the bulls’ upward drive has weakened and now a trend reversal is possible.

A confirmation of the reversal on the third day is required to be sure that the uptrend has reversed. This confirmation may be in the form of a red candlestick, a large gap down or a lower close on the 3rd day.

The following two tabs change content below.

felix

A computer engineer by profession and loves to develop online systems/websites. A self-taught stock trader who loves to share his knowledge and enjoys learning, expanding knowledge and staying well-informed. Most often he uses candlesticks, Fibonacci Retracement levels, Ichimoku system on his technical analysis but loves to hear some rumors as well.

One Response to Bearish Harami Pattern

  1. […] Bearish Harami Pattern is a two-candlestick pattern composed of a small red real body contained within a prior relatively long green real body. “Harami” is an old Japanese word for “pregnant”. The long white candlestick is “the mother” and the small candlestick is “the baby”. […]

Leave a Reply

}