Bullish Harami

Anatomy

The first candle is a large red body. The second is a small green (or sometimes small) body that sits entirely inside the range of the first body. "Harami" means pregnant — the small candle is the "baby" inside the larger one.

Market psychology

After a session of heavy selling, the next session opens higher and stays in a narrow range. The inability to make new lows shows selling pressure is fading, even if buyers have not taken over yet.

When it matters

Meaningful after a downtrend, ideally near support. It is a softer, earlier reversal hint than an engulfing — it shows hesitation rather than a power shift, so confirmation on the next candle is important.

Common beginner mistakes

• Confusing it with an engulfing — a harami is the opposite shape: the small candle is inside the big one, not swallowing it.
• Acting on the harami alone; it signals fading momentum, not yet a confirmed reversal.

Frequently asked questions

Is a bullish harami stronger than a bullish engulfing?

Generally weaker. A harami shows selling pausing (a small candle inside the prior body), while an engulfing shows buyers actively overpowering sellers. Many traders treat the harami as an earlier, less certain hint.

Does the inside candle have to be green?

A green inside candle is the classic bullish harami and the more reliable read. A small red inside candle still shows contraction, but the bullish interpretation is weaker.