The Bearish Harami Candlestick Pattern
The Bearish Harami candlestick pattern occurs in a uptrend is commonly used to indicate a bearish reversal in a stock. It is the opposite of the Bullish Harami candlestick pattern. The Bearish Harami candlestick pattern can be used as a bearish entry point.
In this article you will learn:
- What is a Bearish Harami candlestick pattern
- How to identify and interpret a Bearish Harami candlestick pattern
- Trading techniques after confirming a Bearish Harami candlestick pattern
Our Latest Bearish Harami Stock Alert
What is a Bearish Harami candlestick pattern?
The Bearish Harami is a candlestick pattern that occurs at the top of an uptrend. It is characterized by a small bearish candlestick completely engulfed by the previous trading period's bullish candlestick.
How to Identify a Bearish Harami Candlestick Pattern
Because the Bearish Harami pattern occurs in a downtrend, our suggestion is to look at the previous 3 trading periods to verify if the downtrend is confirmed. To confirm a Bearish Harami, the current candlestick must be bearish and the previous trading period must be bullish. In addition, the bearish candlestick must be completely engulfed by the bullish candlestick. The higher the volume usually indicates a stronger reversal signal. Lastly, the bearish candlestick body should be small, typically less than the 20 day average body size.