Harami

What Is a Harami?

The harami (Japanese for "pregnant") is a two-candle pattern. The first candle has a large body, and the second candle has a small body that fits completely inside the first candle's body. The pattern signals that the prevailing momentum is weakening.

A bullish harami forms during a Downtrend: a large red candle followed by a small green candle contained within it. A bearish harami forms during an Uptrend: a large green candle followed by a small red candle inside it.

How to Trade a Harami

The harami is a warning signal, not a strong reversal pattern by itself. On USD/JPY, a bullish harami at a daily Support level tells you to watch for confirmation. If the next candle closes above the small candle's high, that confirms the reversal. Enter with a stop below the first candle's low.

When the second candle is a Doji (open equals close), the pattern is called a harami cross and is considered more significant because it shows complete indecision within a strong prior move.

Harami vs. Inside Bar

A harami requires the second candle's body to fit inside the first candle's body. An Inside Bar requires the entire candle (including wicks) to fit inside the prior candle's range. The inside bar is a stricter version. Both patterns signal a contraction in volatility that often precedes a directional move.