Harami

A candlestick pattern used in technical analysis. Harami is the Japanese word for pregnant. Its chart looks a little like a pregnant woman, with a large candle (like a woman’s body) engulfing a small candle (like a woman’s pregnant belly).

The pattern is used as a reversal signal and has both a bullish and bearish version.

A bearish hara-mi is a long up candle followed by a small down candle that gaps down to the previous candle’s middle.

A bullish harami is the opposite of this. It is composed of a large down candle followed by a small up candle (engulfed by the previous candle) that gaps up and trades roughly in the middle of the previous candle,