Key Takeaways
Bullish Harami
A small bullish candle contained entirely within the previous large bearish candle. Signals potential reversal but requires confirmation.
Market Psychology
The sudden decrease in range indicates selling pressure is weakening and buyers are starting to enter.
Candle Structure
Trading Setup Example
Entry, stop loss, and take profit levels.
Always wait for pattern confirmation before entering a trade.
Where This Pattern Appears
Trend context and market position.
Appears at the bottom of a downtrend, signals bullish reversal.
How to Identify
First candle: Long bearish candle
Second candle: Small bullish body completely within first candle body
Shadows of second candle should also be within first candle range
Appears after a downtrend
Confirmation Signals
Trading Strategy
š„ Entry
Wait for confirmation candle before entering long
š Stop Loss
Place stop below the pattern low
šÆ Take Profit
Target nearby resistance levels
āļø Risk/Reward
1:1.5
Common Mistakes to Avoid
Pro Tips
Best Timeframes
Pattern Variations
Educational Disclaimer
This content is for educational purposes only and does not constitute financial or investment advice. Trading involves significant risk and you may lose your capital. Always consult a licensed financial advisor before making investment decisions.
Frequently Asked Questions
Related Learning Resources
Related Patterns
Hammer
A single candlestick pattern with a small body at the top and a long lower shadow (at least 2x the body). Appears at the bottom of a downtrend.
Inverted Hammer
A single candlestick with a small body at the bottom and a long upper shadow. Appears at the bottom of a downtrend, signaling potential reversal.
Bullish Engulfing
A two-candle reversal pattern where a large bullish candle completely engulfs the previous bearish candle. One of the most reliable reversal patterns.