Bullish Harami

How it forms

• It follows a clear decline. Since it is a reversal signal, there needs to be a move to reverse.
• Candle 1 is red with a large body: it closes well below its open.
• Candle 2 is green 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 above candle 1's close and closes below 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 sellers 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 above its open. This suggests selling pressure may be slowing and the decline pausing.

In a bullish engulfing, buyers take back all of the sellers' gains. A harami only shows that the decline has stalled, so it is considered a weaker signal. Many sources look for later candles to close above the top of candle 1's body (its open) as confirmation.

When it strengthens, when it weakens

When it is invalidated

If price closes below the pattern's lowest point (including both candles' wicks), the bullish scenario is considered invalid. If the pattern formed at a support zone, a close below the zone means the same.

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

Often confused with

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