The Harami candlestick pattern

Swing Trading, A Scientific Approach Futures and Forex Trading System


The Harami candlestick pattern is a reversal pattern. It consists of two different candlesticks and is considered accurate by many traders.

The pattern can either be a bullish pattern or a bearish pattern based on the previous trend. The first candlestick continues in the same direction as the trend. In this example it is a bullish candlestick.

The first day should be a big move. The second day should be a smaller candlestick that opens up lower than the previous day’s close and does not go above the previous close. It is a much smaller candlestick.

After this 2nd day it is likely that the given security is going to reverse trends, in this case head down. There is some dispute about if the 2nd candlestick needs to be a different color then the first, but if it is it offers a stronger signal.

Below is an example of what a hamari candlestick pattern looks like.