What Is a Bearish Harami?

A bearish harami is a two-bar Japanese candlestick pattern indicating that prices may shortly reverse downwards. The pattern contains a long white candle and a small black candle. The body of the first candle must include both the opening and closing prices of the second candle. A bearish harami first forms after an uptrend.

It can be better understood with a bullish harami, which is opposite to it.

Understanding Bearish Harami

The second candle's size defines how powerful the pattern is; the smaller it is, the more likely a reversal is to occur. A bullish harami indicates that prices may reverse to the upside, is the opposite pattern to a bearish harami.

A bearish harami is frequently used in conjunction with other technical indicators by traders to enhance its potency as a trading signal. When a bearish harami emerges during a retracement, a trader may utilize the 200-day moving average to confirm that the market is in a long-term decline.

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