Harami
A harami is a two-candle pattern where a small body sits completely inside the body of the large candle before it. After a decline it hints at a bullish reversal, after a rally at a bearish one, and it usually needs confirmation from the next candle.
A strong move produces a big candle — then the next session goes almost nowhere. That sudden hesitation is what a harami captures. The name is Japanese for "pregnant": the small second candle sits inside the first like a baby. This entry explains how to spot bullish and bearish harami, what they mean and how traders confirm them.
- Category
- Price Action
- Reading time
- 4 min
- Also called
- Harami pattern, Bullish harami, Bearish harami
- Updated
The harami in plain words
A harami has two candles: the first with a large body, the second with a small body fully contained within the first.1
Every harami looks the same; whether it is bullish or bearish depends on the trend before it — after a decline it is a potential bullish reversal, after an advance a potential bearish one.2
It is best treated as an early warning to watch for confirmation rather than a direct entry signal.3
How to trade a harami, step by step
Check the trend
A reversal pattern needs a trend to reverse. See Trend.
Spot the large candle
A long body in the direction of the trend.
Spot the small candle
Its body fits inside the first body.
Wait for confirmation
The next candle should move in the new direction.
Place a stop
Beyond the large candle's extreme. See Stop Loss.
Check the location
Stronger at support or resistance. See Support and Resistance.
Worked examples
Example 1 — Bullish harami
Possible bottomAfter a decline, day 1 opens at $50 and closes at $45. Day 2 opens at $46 and closes at $47.50.
| Day 1 body | $45–$50 (bearish) |
| Day 2 body | $46–$47.50, inside day 1 |
After a decline, a small body inside a large one is a potential bullish reversal.1
Example 2 — Confirmed trade
2 : 1 setupDay 3 closes at $49, above day 2. You buy at $49 with a stop at $44.50 and a target of $58.
| Risk | $49 − $44.50 = $4.50 |
| Reward | $58 − $49 = $9 |
| Reward-to-risk | 2 : 1 |
Confirmation the following day, such as a further advance, is what turns a harami into a signal.1
Example 3 — Bearish harami
Possible topAfter a rally, a long white candle from $80 to $88 is followed by a small black candle from $86 to $85.
| Day 1 body | $80–$88 (bullish) |
| Day 2 body | $85–$86, inside day 1 |
After an advance, the same shape suggests that buying pressure is fading.3
Harami vs engulfing
| Aspect | Harami | Engulfing |
|---|---|---|
| Second candle | Small, inside the first | Large, wraps the first |
| Message | Momentum slows | Momentum flips |
| Strength | Weaker, needs confirmation | Stronger |
| See also | Harami cross (doji) | Engulfing Pattern |
How traders use the harami
Early reversal warning
A pause after a strong move.
At support or resistance
Adds weight to key levels.
Taking profits
A bearish harami can prompt trimming longs. See Profit Taking.
With indicators
Combine with momentum or volume. See Relative Strength Index.
Advantages and disadvantages
Advantages
- Easy to recognise.
- Common, so it appears often.
- Works in any market and time frame.
Disadvantages
- A weak signal on its own.
- Needs confirmation, which costs part of the move.
- Frequent false signals in choppy markets.
Going deeper
Read as far as you need. Each level builds on the one before it.
What the name means
Beginner
"Harami" is Japanese for pregnant, describing the small candle sitting inside the larger one.3
Colour combinations
Intermediate
Any colour combination can form a harami, though Steve Nison suggests bullish harami are strongest when the first candle is white — and white-first combinations are rarer after a decline.1
Reversal or continuation
Advanced
A harami can also mark a pause before the trend resumes, which is why it is read as a possible reversal or continuation depending on what follows.4 See Continuation.
Common mistakes
Ignoring the trend
Without a prior trend there is nothing to reverse.
Trading without confirmation
Many harami fail.
Checking shadows instead of bodies
The bodies define the pattern.
Stops too tight
Place them beyond the large candle.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- A harami is a small body inside a large prior body.
- After a decline it is potentially bullish; after a rally bearish.
- It signals slowing momentum, not a confirmed reversal.
- Wait for confirmation from the next candle.
- It works best at key levels.
Frequently asked questions
What is a harami cross?
Is a harami reliable?
Do the shadows have to fit inside?
Further learning
- Engulfing Pattern
The opposite two-candle shape.
- Doji
Forms the harami cross.
- Candlestick
How candles are read.
- Support and Resistance
Where harami matter most.
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- StockCharts ChartSchool. Candlestick Bullish Reversal Patterns (opens in a new tab) Checked .
- StockCharts ChartSchool. Candlestick Bearish Reversal Patterns (opens in a new tab) Checked .
- IG. 16 Candlestick Patterns Every Trader Should Know (opens in a new tab) Checked .
- Corporate Finance Institute. Candlestick Patterns (opens in a new tab) Checked .
Read more elsewhere
- Trading Metrics (our sister site): Bullish Harami (opens in a new tab)
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. Trading Metrics is our sister site, under the same ownership; we are not affiliated with any other publisher linked above. Last reviewed . Report an error or request a source credit.