Bullish Harami
Bullish Harami
A large red candle is followed by a small green body that sits entirely inside the first candle’s body.
30-second summary
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.
Pattern in chart context
The chart shows the typical appearance of the Bullish Harami pattern within a price action context. The highlighted area marks the pattern itself. Data is illustrative.
Market psychology — in 3 steps
The downtrend continues
Lower highs and lower lows form over several candles. Sellers control the market and sentiment remains negative.
The Bullish Harami forms
Seller pressure fades and buyers return. Price is pulled back near the starting point, creating the possibility of a reversal.
Confirmation arrives
The next candle closes with a green body, ideally on high volume. Sentiment has shifted and a new uptrend may begin.
Description
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.
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.
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
Trading strategy
Entry comes after the confirming third bullish candle closes. Place the stop-loss below the low of the first body. Use a modest take-profit target, around a 1.5–2:1 risk/reward ratio.
⚠️ For educational purposes only. Trading based only on candlestick patterns is not recommended—combine them with other technical analysis tools, support/resistance levels, and risk management.
Candle anatomy
- 01 First candle: large red body in a downtrend
- 02 Second candle: small green body
- 03 The second body sits entirely inside the first body
- 04 The second candle’s wicks are often inside the first body as well
Same shape, opposite meaning
The Bullish Harami and the Bearish Harami look visually identical. The difference lies in context — if you mistake one for the other, you enter in the opposite direction.
Bullish Harami
Bullish Harami
Bearish Harami
Bearish Harami
💡 The lesson: the candle shape alone is never enough — always read the trend first, then the pattern.
Most common mistakes
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.
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.
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.
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.
Quick self-test
Which one is the Bullish Harami?
A reversal signal at the end of a downtrend.
