The Bullish Harami Candlestick Pattern: A Quiet Hint at Reversal During a Downtrend
Not all candlestick patterns shout for attention. Some whisper subtle signals that the trend might be changing—and the bullish harami candlestick pattern is one of them. While it may not look dramatic, this two-candle setup often shows that selling pressure is slowing and buyers are beginning to test the waters.
Let’s explore how this pattern works, when it matters most, and how traders use it to spot early signs of a bullish reversal.
What the Bullish Harami Pattern Looks Like
A smaller candle within a bigger one
The bullish harami candlestick pattern consists of two candles forming after a downtrend:
1. The first candle is a large bearish candle (usually red), showing continued selling pressure.
2. The second candle is a small bullish candle (typically green) that fits completely inside the body of the first one.
This creates a “pregnant” look—fittingly, “Harami” means “pregnant” in Japanese.
The small green candle doesn’t make a bold reversal statement—but it signals that momentum has paused and a potential shift may be coming.
Why the Bullish Harami Pattern Matters
Reading between the candles
The bullish harami candlestick pattern indicates indecision, but with a subtle lean toward a possible trend change.
Here’s what it suggests:
– The bears were clearly in control on the first candle.
– But the next session didn’t follow through—instead, buyers managed to hold the line and close slightly higher.
While the move may be small, it hints that the sell-off might be running out of steam.
When supported by confirmation, this pattern can mark the beginning of a bullish shift—especially when forming near a support level or after a sharp downtrend.
When and Where the Pattern Means the Most
Context turns quiet signals into real opportunities
The bullish harami carries more weight when it forms after a strong decline. It’s not ideal in sideways markets where momentum is lacking.
Here’s how to interpret it:
It’s not a pattern to trade blindly—but combined with other clues, it becomes much more useful.
How Traders Use the Bullish Harami Pattern
Waiting for confirmation before jumping in
Because it’s a cautious pattern, traders typically wait for the next candle to confirm whether the reversal is real.
Here’s a standard process:
Identify the bullish harami after a visible downtrend.
Wait for a third candle—a green close above the Harami’s high.
Check other tools like RSI rising, volume increasing, or price reacting to a key zone.
Here’s a helpful breakdown:
Example: Bullish Harami in Action
Let’s say AUD/USD is falling steadily and forms a large red candle. The next day, a small green candle appears completely inside the previous candle’s body.
That’s your bullish harami candlestick pattern.
If the next candle pushes above the small green candle’s high—and volume ticks up—many traders would see this as a confirmation. They may consider entering a long trade with a stop just below the Harami’s low.
The bullish harami candlestick pattern doesn’t scream reversal—but it gently taps traders on the shoulder. When placed in the right context, it helps spot the moment the selling pressure begins to fade and the market starts to level out.
Next, we’ll take a look at its opposite—the Bearish Harami, which can signal when a bullish move is running out of steam.