Bullish Harami

The Bullish Harami double candlestick formation is similar to the Bullish Harami Cross.  Both patterns are considered by traditional technical analysts to be "inside day" formations.

Bullish Harami

The Bullish Harami double candlestick formation is similar to the Bullish Harami Cross.  Both patterns are considered by traditional technical analysts to be "inside day" formations.  The difference between the two candlestick patterns is that the second day of the Bullish Harami is not a Doji.


Bullish Harami Identification

The Bullish Harami candlestick formation is a two day pattern that has a small body day completely contained within the range of the previous body, and is opposite in direction. The Harami is bullish when there is a large bearish candle on Day 1 followed by a smaller bullish candle on Day 2. 

Bullish Harami candlestick pattern

Interpretation of Bullish Harami

The Bullish Harami  is similar to the Bullish Engulfing Pattern, except that day 2 of the Harami trades inside the day 1 body.  This is in contrast to the Bullish Engulfing Pattern where day 2 range is outside the day 1 range both in high and low price.  The Bullish Harami offers a much weaker signal.  In range bound markets this formation will occur frequently with little significance.  But if this pattern occurs after an downtrend, it takes on greater significance.  If the bullish Harami does turn out to be a reversal pattern then the low of the two candles will likely turn into a significant resistance level.

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