The Bullish Harami Candlestick Pattern
The Bullish Harami candlestick pattern occurs in a downtrend is commonly used to indicate a bullish reversal in a stock. It is the opposite of the Bearish Harami candlestick pattern. The Bullish Harami candlestick pattern can be used as a bullish entry point.
In this article you will learn:
- What is a Bullish Harami candlestick pattern
- How to identify and interpret a Bullish Harami candlestick pattern
- Trading techniques after confirming a Bullish Harami candlestick pattern
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What is a Bullish Harami candlestick pattern?
The Bullish Harami is a candlestick pattern that occurs at the bottom of a downtrend. It is characterized by a small bullish candlestick completely engulfed by the previous trading day's bearish candlestick.
How to Identify a Bullish Harami Candlestick Pattern
Because the Bullish 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 Bullish Harami, the current candlestick must be bullish and the previous trading period must be bearish. In addition, the bullish candlestick must be completely engulfed by the bearish candlestick. The higher the volume usually indicates a stronger reversal signal.