Bearish (reversal down)

Bearish Harami

Bearish Harami

A large green candle followed by a small red body contained within the first body, signaling a possible stall in an uptrend.

2 candles
★★★★★ 3/5
reversal consolidation harami

30-second summary

What does it signal?

A Bearish Harami at the end of an uptrend signals a potential reversal — buyers tried to push higher, but sellers pushed price back down.

When is it reliable?

More reliable at a strong resistance level, with above-average volume and a confirming red candle in the next period.

When to avoid it?

Avoid in sideways markets and on very short time frames such as 1-minute and 5-minute charts, where noise is too high and the signal has little statistical value.

Pattern in chart context

The chart shows the typical appearance of the Bearish Harami pattern within a price action context. The highlighted area marks the pattern itself. Data is illustrative.

Market psychology — in 3 steps

1
Buyer strength

Uptrend continues

Several candles print higher highs and higher lows. Buyers control the market, and sentiment remains positive.

2
Turning point

Bearish Harami forms

Buying pressure fades and sellers return. Price is pushed back toward the starting area, creating the possibility of a reversal.

3
Selling pressure

Confirmation arrives

The next candle closes with a red body, ideally on high volume. Sentiment has shifted, and a new downtrend begins.

Description

The Bearish Harami is the mirror image of the Bullish Harami. The first candle has a large green body in an uptrend, followed by a small red candle whose body sits completely inside the prior body. The pattern shows that upward momentum is stalling as buyer strength fades. On its own, it is a weak signal and needs confirmation.

Context of appearance

Most relevant near the end of an uptrend, especially in overbought market conditions. By itself, it is weak; it gains value when paired with another signal.

Identification rules

  • Appears after an uptrend
  • The first body is 2-3 times larger than the second
  • The second body is preferably red
  • The second body is fully contained within the first body
  • A confirming third bearish candle increases reliability

Trading strategy

Wait for a confirming bearish candle. For a short CFD setup, entry comes after that candle closes. Place the stop-loss above the top of the first candle’s body. Take-profit target: 1.5-2:1 reward-to-risk.

⚠️ For educational purposes only. Trading based only on candlestick patterns is not advisable — always combine them with other technical analysis tools, support/resistance levels, and risk management.

Candle anatomy

  1. 01 First candle: large green body in an uptrend
  2. 02 Second candle: small red body
  3. 03 The second body is fully inside the first body
  4. 04 The second candle’s wicks may be inside or outside the first body

Same shape, opposite meaning

The Bearish Harami and the Bullish Harami look visually identical. The difference lies in context — if you mistake one for the other, you enter in the opposite direction.

💡 The lesson: the candle shape alone is never enough — always read the trend first, then the pattern.

Most common mistakes

01

Ignoring context

A Bearish Harami only makes sense near the end of an uptrend. In a sideways market or downtrend, it carries a different meaning, so check the trend first.

02

Entering after the pattern closes

The pattern itself is not an entry trigger. Wait for the confirming red candle to close; patience means fewer false signals.

03

Using a time frame that is too short

On 5-minute candles, most reversal patterns are noise. Daily and 4-hour time frames tend to produce the highest hit rate.

04

Ignoring volume

A Bearish Harami on low volume is a weak signal. With above-average volume, a reversal becomes more likely. Always check the volume bar.

Quick self-test

Which one is the Bearish Harami?

A reversal signal near the end of an uptrend.