Harami

The Bearish Harami is a two-line pattern where the body of the white candlestick of the first line wraps around the body of the black candlestick of the second line.

The first line can be any basic candlestick with a white body, which appears as a long line. Candlesticks that are Spinning Tops, even with white bodies, cannot appear on the first line.

The second line can be any black basic candlestick, which appears as both a long and a short line. It can also be a Doji candlestick.

The pattern appears in an uptrend and predicts its reversal. The Bearish Harami pattern requires confirmation on subsequent candles.

The Three Inside Down pattern was created as a confirmation of the Bearish Harami. The pattern can be confirmed by breaking the nearest support zone or a trend line.

If a candlestick that follows the pattern closes above the opening price of the second line (e.g. black candlestick), it is likely that an uptrend will continue. On the contrary, when a candlestick that follows the pattern closes below its second line, there is a possibility that the uptrend will be interrupted.