Beginner2 min readLast updated: 2026-06-10
Harami Pattern — Complete Guide
Master the Harami (Inside Bar) reversal pattern. Learn bullish and bearish Harami identification and trading strategies.
What is a Harami?
Harami (Japanese for "pregnant") is a 2-candle pattern where the second candle's body is completely contained within the first candle's body. It signals potential reversal or consolidation.
Types
Bullish Harami (after downtrend):
- C1: Large bearish candle
- C2: Small bullish candle contained within C1's body
- Signal: Selling momentum weakening
Bearish Harami (after uptrend):
- C1: Large bullish candle
- C2: Small bearish candle contained within C1's body
- Signal: Buying momentum weakening
Psychology
- C1 shows strong directional momentum
- C2 shows that momentum has STALLED
- The containment means the counter-side is building strength
- Not as strong as Engulfing — requires more confirmation
Trading
- Entry: Break above C1 high (bullish) or below C1 low (bearish)
- Stop: Opposite end of C1
- Stronger with volume confirmation and key level
- Often used as an Inside Bar setup in Price Action
- Wait for the breakout direction
Harami = Inside Bar
In Western Price Action terminology, a Harami is the same as an Inside Bar. Many traders prefer the Inside Bar approach — trading the breakout of the mother candle's range.
Related Topics
- Engulfing — Opposite (outer candle dominates)
- Continuation — Inside bars as continuation