Bearish Harami

How it forms

• It follows a clear rise. Since it is a reversal signal, there needs to be a move to reverse.
• Candle 1 is green with a large body: it closes well above its open.
• Candle 2 is red with a small body: no more than about half of candle 1's body.
• The body of candle 2 sits entirely inside the body of candle 1: it opens at or below candle 1's close and closes above candle 1's open.

The rule is about bodies, so candle 2's wicks may reach outside candle 1's body. In crypto, candle 2 usually opens at candle 1's closing price. This does not invalidate the pattern, and no gap is required. If candle 2 is a doji (body at most 10% of its range), the pattern is called a harami cross and is read as a slightly clearer pause.

What it suggests

The first candle shows buyers are still in control. The second candle fails to carry that move on: price stays in a narrow band inside the first body and closes below its open. This suggests buying pressure may be slowing and the rise pausing.

In a bearish engulfing, sellers wipe out all of the buyers' gains. A harami only shows that the rise has stalled, so it is considered a weaker signal. Many sources look for later candles to close below the bottom of candle 1's body (its open) as confirmation.

When it strengthens, when it weakens

When it is invalidated

If price closes above the pattern's highest point (including both candles' wicks), the bearish scenario is considered invalid. If the pattern formed at a resistance zone, a close above the zone means the same.

A candle that only wicks above the high and closes back below it does not invalidate the pattern on its own.

Often confused with

• Bullish HaramiThe opposite: after a decline, a small green candle sits inside a large red body.
• Bearish EngulfingThe inverse relationship: a large red candle fully covers the previous green body.
• Dark Cloud CoverThe red candle opens above the green body and closes below its middle; it does not start inside the body.