Harami

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

The first line can be any basic candlestick with a black body, which appears as a long line. Spinning Top candles, even with black bodies, cannot appear on the first line.

The second line can be any white basic candlestick, which appears as both a long and a short line. It can also be a Doji candlestick, while shadows are not important.

The pattern appears in a downtrend and predicts its reversal. The Bullish Harami pattern requires confirmation on subsequent candles.

The Three Inside Up pattern was created as a confirmation of the Bullish Harami. The pattern can be confirmed by breaking the nearest resistance zone or a trend line.

If the appearance of a pattern following a candlestick closes below the opening price of the second line (for example, a white candlestick), a downtrend is likely to continue. Conversely, when a candlestick following the pattern closes above its second line, there is a chance that the downtrend will be interrupted.

Traders should be careful when the first line of a Bullish Harami has a long black body, as it may form a strong resistance zone.

The market context in which a Bullish Harami develops is more important than the candlestick bodies or the length of the shadows.