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CANDLESTICK PATTERN GUIDE

Bullish Harami Candlestick Pattern

The Bullish Harami is a two-candle formation commonly studied after a decline. It consists of a relatively large bearish candle followed by a smaller bullish candle whose real body sits entirely within the previous candle’s real body. It may indicate a pause in selling pressure or a potential bullish reversal, but context and confirmation matter.

A Bullish Harami does not guarantee that prices will rise.

Explore the Pattern ↓
Bullish Harami: a large bearish candle followed by a small bullish candle whose real body sits inside the first real body Containment zone 1st · Bearish 2nd · Bullish
Bearish candleBullish candle
Pattern type
Two-candle pattern
Common context
After a decline
Key feature
The second candle’s real body is contained within the first candle’s real body
Interpretation
Potential bullish reversal or pause in downward momentum

What Is a Bullish Harami Pattern?

  • The Bullish Harami is a two-candle formation commonly examined after a downward price move.
  • The first candle is bearish, meaning its close is below its open.
  • The first candle typically has a relatively large real body.
  • The second candle is usually bullish and has a smaller real body.
  • The second candle’s real body lies entirely within the first candle’s real body.
  • The formation may suggest that selling pressure is weakening or that the market is pausing.
  • The pattern is generally more meaningful after a decline than without a preceding trend.
  • It does not independently predict a reversal or guarantee a price increase.

Bodies, not full ranges

The standard definition focuses on the real bodies, not the complete high-to-low ranges. The second candle’s shadows may extend outside the first candle’s real body.

Definitions can vary

Traditional Harami definitions often emphasize a smaller second body contained within the first body. Candle color and gap conventions can vary across markets and charting sources.

Anatomy of the Two Candles

Anatomy diagram: first bearish candle with open at the top and close at the bottom of a large body; second smaller bullish candle whose body sits between those two prices, with shadows extending slightly beyond Open 1 Close 1 Close 2 Open 2 Upper shadow Lower shadow Containment range First real body Second real body
Bearish candleBullish candle
CANDLE 1 · BEARISH

Open is above close. The real body is relatively large and represents downward price movement during the first candle period. Its open sits at the upper body boundary and its close at the lower boundary.

CANDLE 2 · SMALLER

The real body is noticeably smaller. In the main illustration it is bullish, and the entire body fits within the first real body’s price range. Its upper or lower shadow may extend outside the first candle’s real body.

How Does a Bullish Harami Form?

  1. A large bearish candle forming after a decline Decline 1

    Selling Pressure

    A relatively large bearish candle forms after a decline, reflecting downward price movement.

  2. A smaller candle whose real body sits inside the previous real body 2

    Smaller Candle Appears

    The next candle forms a smaller real body contained within the previous candle’s real body.

  3. The smaller candle may signal a pause; what follows is uncertain ? 3

    Momentum May Be Changing

    The smaller second candle may indicate that selling pressure has paused or weakened relative to the previous period. Additional price action is needed to assess whether a meaningful reversal develops.

The formation reflects a change in candle size and price movement, not proof that buyers have taken control.

Bullish Harami vs Bearish Harami

BULLISH HARAMI Bullish Harami: large bearish candle then a small bullish candle inside its body
  • First candle: Bearish, generally with a larger real body.
  • Second candle: Smaller real body contained within the first real body.
  • Common context: After a decline.
  • Possible interpretation: Pause in selling pressure or potential bullish reversal.
BEARISH HARAMI Bearish Harami: large bullish candle then a small bearish candle inside its body
  • First candle: Bullish, generally with a larger real body.
  • Second candle: Smaller real body contained within the first real body.
  • Common context: After an advance.
  • Possible interpretation: Pause in buying pressure or potential bearish reversal.

The two patterns are opposites in their common market context and interpretation. Their significance depends on the preceding trend and subsequent price action.

Hypothetical OHLC Example

Hypothetical candles. Candle 1: high 122, low 108, bearish body 120 to 110. Candle 2: high 117, low 112, bullish body 114 to 116, inside the first body ₹120.00 ₹110.00 High ₹122.00 Low ₹108.00 High ₹117.00 Low ₹112.00 Candle 1 (bearish) Candle 2 (bullish)

The shaded zone marks the first real body (₹110.00 to ₹120.00). The second real body (₹114.00 to ₹116.00) sits fully inside it.

Hypothetical OHLC values
CandleOpenHighLowClose
Candle 1₹120.00₹122.00₹108.00₹110.00
Candle 2₹114.00₹117.00₹112.00₹116.00

All values are hypothetical and do not represent a live market or actual security.

First candle

  • Open = ₹120.00
  • Close = ₹110.00
  • Real-body range = ₹110.00 to ₹120.00
  • Real-body size = ₹10.00

Second candle

  • Open = ₹114.00
  • Close = ₹116.00
  • Real-body range = ₹114.00 to ₹116.00
  • Real-body size = ₹2.00

Why this is a Bullish Harami structure

  • The first candle is bearish.
  • The second candle is bullish.
  • The second real body lies entirely between ₹110.00 and ₹120.00.
  • The second body is smaller than the first body.
  • The second candle’s high and low may extend beyond its real body and do not need to remain within the first candle’s real body.

Interactive Bullish Harami Pattern Checker

Enter OHLC values for two consecutive candles. The fields start with the hypothetical example above.

Candle 1
Candle 2
First real-body size
—
Second real-body size
—
Second body inside first body?
—
Rules met
—

Rules used (simplified, educational): (1) first candle bearish; (2) second candle bullish; (3) second real body strictly inside the first real body; (4) second real body smaller than the first. Some charting conventions use slightly different definitions.

This checker evaluates candle structure only. It does not evaluate the preceding trend, volume, support and resistance, broader market conditions, or the probability of future price movement. It never gives buy or sell advice.

Where Is the Bullish Harami Most Relevant?

1

After a Decline

The Bullish Harami is commonly studied after a downward price move because the smaller second real body may indicate a pause in selling pressure.

2

Near Support

A pattern near a potential support zone may warrant closer examination, but support can fail and the pattern can produce a false signal.

3

With Subsequent Confirmation

Some traders examine later price action for additional evidence of a potential upward move. Confirmation can fail or arrive after part of a move has already occurred.

4

In Sideways Markets

The pattern can appear frequently in choppy markets, where its significance may be limited without a clear preceding decline.

These are possible interpretations, not guaranteed predictions.

How to Read and Confirm the Pattern

0 of 8 items reviewed

No confirmation method guarantees success. Waiting for confirmation may mean acting after part of a price move has already occurred.

Common Mistakes

Assuming a guaranteed reversal

Assuming every Bullish Harami guarantees a bullish reversal.

Ignoring the preceding trend

The pattern is generally more meaningful after a decline, so the trend before it matters.

Body vs full range

Confusing real-body containment with containment of the entire candle range.

Misreading open and close

Misreading open and close values or candle direction.

Ignoring the wider picture

Ignoring nearby price levels, timeframe, or broader market conditions.

Overlooking risk

Making trading decisions without considering risk, liquidity, transaction costs, or false signals.

Advantages and Limitations

Potential advantages

  • The two-candle structure is relatively easy to learn.
  • Highlights a contraction in real-body size.
  • Helps learners examine possible changes in short-term market sentiment.
  • Can complement broader technical analysis.
  • Encourages attention to the relationship between candle bodies.

Limitations

  • Does not guarantee a bullish reversal.
  • Can produce false signals.
  • Its significance depends on the preceding trend and market context.
  • Classification conventions may vary.
  • Confirmation may be delayed or fail.
  • Does not replace independent research or risk management.

Key Takeaways

  • Bullish Harami is a two-candle formation commonly studied after a decline.
  • The first candle is bearish and generally has a larger real body.
  • The second candle’s smaller real body sits within the first candle’s real body.
  • Context and subsequent price action are important.
  • The pattern is a potential signal to investigate, not a guaranteed prediction.

Frequently Asked Questions

Disclaimer: Educational content only. Candlestick patterns do not guarantee future price movements and should not be used as the sole basis for investment or trading decisions. Markets involve risk. Conduct independent research and consider your financial circumstances before making financial decisions.

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