The Harami (meaning "pregnant" in Japanese) Candlestick Pattern...

The Harami (meaning "pregnant" in Japanese) Candlestick Pattern is considered a reversal pattern. The pattern consists of two Candlesticks:

• Larger Bullish or Bearish Candle(Day 1)
• Smaller Bullish or Bearish Candle (Day 2)

The Harami Pattern is considered either bullish or bearish based on the criteria below:

Bearish Harami: A bearish Harami occurs when there is a large bullish green candle on Day 1 followed by a smaller bearish or bullish candle on Day 2. The most important aspect of the bearish Harami is that prices gapped downon Day 2 and were unable to move higher back to the close of Day 1. This is a sign that uncertainty could be entering the market.

Bullish Harami: A bullish Harami occurs when there is a large bearish red candle on Day 1 followed by a smaller bearish or bullish candle on Day 2. Again, the most important aspect of the bullish Harami is that prices gapped up on Day 2 and price was held up and unable to move lower back to the bearish close of Day 1.