SocialForex
Beginner

Bullish Harami Candlestick Pattern – Strong Reversal

Learn about the Bullish Harami candlestick pattern, how to identify and trade this strong bullish reversal signal.

Mark · Trader & Founder, Social Forex

Bullish Harami Candlestick Pattern – Strong Reversal

What is Bullish Harami Pattern?

The Bullish Harami is a two-candle bullish reversal pattern that appears during a downtrend. The first candle is a long bearish (red/black) candle, and the second candle is a small bullish (green/white) candle that is completely contained within the body of the first candle. The name "Harami" means "pregnant" in Japanese, as the second candle resembles a fetus inside the mother candle.

CompressionMother BarInside Bar

How to Identify Bullish Harami

  • A clear prior downtrend must exist.
  • The first candle is a long bearish candle with a large body and little to no wicks.
  • The second candle is a small bullish candle, and its body is entirely inside the body of the first candle (usually comparing real bodies).
  • The second candle should be bullish (green) to confirm the reversal.
  • Volume often increases on the second candle, indicating strong buying pressure.

    • How to Trade Bullish Harami

  • Entry: After the second candle closes, enter a buy order when price breaks above the high of the second candle (or the high of the first candle for more confirmation).
  • Stop Loss: Place below the low of the first candle (or below the low of the second candle) to avoid premature stop outs.
  • Take Profit: Use previous support/resistance levels or a risk-reward ratio of 1:2 or 1:3.

    • Real Example

    Suppose EUR/USD is in a downtrend. On Monday, a long red candle forms. On Tuesday, price opens lower but closes slightly higher, forming a small bullish candle inside Monday's body. This is a Bullish Harami. A trader could buy when price breaks above Tuesday's high, with stop loss below Monday's low.

    Price Action — reading candlestick patterns in context

    Common Mistakes

  • Ignoring the trend: Without a prior downtrend, the pattern is less reliable.
  • Ignoring volume: Low volume reduces the signal's strength.
  • Entering too early: Wait for confirmation above the second candle's high.
  • Not using other indicators: Combine with RSI, MACD, or trendlines for higher accuracy.

    • In summary, the Bullish Harami is a powerful bullish reversal pattern, but it works best when combined with other technical tools.

    Content is for reference only, not investment advice. Forex trading carries high risk.

    Save your learning progress

    Create an account to keep lessons, watchlist symbols, and journal notes connected as you practice.

    Save progress

    ← Lesson list

    Explore more

    Start hereAcademyResourcesWebinar