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A bullish harami is a two-candlestick chart pattern that signals a potential reversal from a downtrend toward an upswing. The first candle is large and bearish, confirming the existing downward move. The second candle is smaller and bullish, with its entire body contained within the body of the first candle. "Harami" is the Japanese word for pregnant, which describes the visual: the large candle appears to contain the small one. The pattern ranks 25th out of 103 candlestick patterns in frequency of occurrence and carries a success rate of approximately 53%, meaning it requires confirmation from other indicators before acting on it.
Think of the bullish harami like a car decelerating before a stop: it signals momentum is slowing, but the vehicle has not yet changed direction.
A bullish harami that forms during sideways price action or in the middle of an uptrend has no interpretive value. The pattern is specifically a potential bottoming signal. The first large bearish candle must be continuing a sustained downward move. Without that context, you are looking at two unrelated candles, not a pattern.
Location on the chart also strengthens or weakens the signal. A bullish harami that forms near a strong historical support level or after a prolonged period of selling pressure carries more weight than one that appears without any meaningful technical backdrop.
The first candle confirms sellers are in control. The second candle does not show buyers dominating. It shows that sellers failed to push prices below the previous session's range. That distinction matters. The bullish harami is an early warning, not a confirmed reversal.
This is why traders consider it a weaker signal than the bullish engulfing pattern. A bullish engulfing completely overtakes the prior bearish candle and demonstrates buyers overpowering sellers. The bullish harami only shows selling exhaustion, which still requires further confirmation before the directional shift is verified.
Most traders wait for a third confirming candle before acting. That candle should close above the high of the second harami candle, which demonstrates that bullish momentum is actually following through on the potential signal. Entering without confirmation exposes you to false starts.
Pairing the pattern with additional indicators significantly improves its reliability. A bullish harami that forms when the RSI shows oversold conditions, when the MACD is delivering a bullish crossover, or when volume is declining on the second candle all increase the probability that the reversal is genuine rather than a temporary pause in the existing downtrend.
Sources:
https://www.dukascopy.com/swiss/english/marketwatch/articles/harami-candlestick/
https://www.forex.com/en-us/trading-guides/understanding-bullish-and-bearish-harami-patterns/
https://www.litefinance.org/blog/for-beginners/how-to-read-candlestick-chart/bullish-harami-pattern/
https://www.strike.money/technical-analysis/bullish-harami
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