Bullish Harami
bullish reversal signal · 2 candles · reliability 3/5
A large red candle is followed by a small green body that sits entirely inside the first candle’s body.
Harami means “pregnant” in Japanese—the small second candle sits inside the large body of the “mother” candle. In a Bullish Harami, a large red candle is followed by a small green body that remains fully within the first candle’s body. The signal shows a downtrend stalling: seller strength is fading and the market is moving into consolidation. It is weaker than an engulfing pattern, but it can warn against staying in short positions without confirmation.
What does it signal? A Bullish Harami at the end of a downtrend signals a potential reversal—the sellers pushed price lower, but buyers started to push back.
When is it reliable? At a strong support level, with above-average volume and a confirming green candle in the next period.
When to avoid it? In sideways markets and on short time frames such as 1-minute or 5-minute charts, where noise is too high and the signal has little statistical value.
Anatomy and identification rules
Candle anatomy
- 1
First candle: large red body in a downtrend
- 2
Second candle: small green body
- 3
The second body sits entirely inside the first body
- 4
The second candle’s wicks are often inside the first body as well
Identification rules
- Appears after a downtrend
- The first body is 2–3 times larger than the second
- The second body is preferably green
- The second body sits fully inside the first body
- A confirming third candle increases reliability
Pattern in chart context
What it says about the market
Context of appearance: This pattern appears near the end of a downtrend, where the market is likely oversold. On its own, it is a weak signal and is best evaluated alongside other technical evidence.
Market psychology in three steps
- 1
The downtrend continues. Lower highs and lower lows form over several candles. Sellers control the market and sentiment remains negative.
- 2
The Bullish Harami forms. Seller pressure fades and buyers return. Price is pulled back near the starting point, creating the possibility of a reversal.
- 3
Confirmation arrives. The next candle closes with a green body, ideally on high volume. Sentiment has shifted and a new uptrend may begin.
Same shape, opposite meaning
The Bullish Harami and the Bearish Harami look identical. The difference lies in context — mistake one for the other and you enter in the opposite direction. The candle shape alone is never enough: always read the trend first, then the pattern.
Most common mistakes
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Ignoring context. A Bullish Harami is meaningful only near the end of a downtrend. In a sideways market or an uptrend, the same structure carries a different meaning—check the trend first.
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Entering right after the pattern closes. The pattern itself is not an entry trigger. The stronger signal comes after a confirming green candle closes. Patience means fewer false signals.
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Using too short a time frame. On 5-minute candles, most reversal patterns are noise. Daily and 4-hour time frames usually produce the highest hit rate.
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Ignoring volume. A Bullish Harami on low volume is a weak signal. With above-average volume, the reversal is more likely. Check the volume bar with the pattern.