What Is a Harami Pattern?
A harami is a two-candle pattern that can signal a potential trend reversal or pause in momentum. It forms when a small candle is contained entirely within the real body of the larger candle that precedes it. The name comes from the Japanese word for ‘pregnant’, which describes the way the small second candle sits inside the larger first one.
Bullish and Bearish Harami
The pattern works in both directions depending on the prevailing trend:
| Type |
Prior Trend |
First Candle |
Second Candle |
| Bullish harami |
Downtrend |
Large bearish |
Small bullish inside it |
| Bearish harami |
Uptrend |
Large bullish |
Small bearish inside it |
The Harami Cross
When the small second candle is a doji, with an open and close that are almost equal, the pattern is known as a harami cross. The near-total indecision it shows can make the reversal signal more pronounced, because it suggests the prior momentum has stalled sharply.
What the Pattern Indicates
A harami points to a loss of momentum. After a strong directional candle, the much smaller body that follows shows hesitation, which can precede a reversal or a period of consolidation. The pattern describes a shift in balance between buyers and sellers rather than an immediate change in direction.
Reading a Harami With Caution
A harami signals indecision, not a confirmed turn, and price often continues in its original direction afterwards. The pattern carries more weight near support or resistance and when supported by volume or momentum tools. Treating a single harami as a definitive entry without further confirmation can expose traders to whipsaw moves.
Where the Harami Fits
The harami is best understood as a sign that a trend may be losing conviction, prompting closer attention rather than instant action. Used alongside trend analysis and confirmation candles, it helps traders gauge when momentum is fading. Across VT Markets instruments, recognising patterns like the harami can sharpen a trader’s sense of timing.
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