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.
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