Harami
a.k.a. Harami pattern
A two-candle pattern where a small candle sits entirely inside the body of the larger candle before it,…
In plain English
A two-candle pattern where a small candle sits entirely inside the body of the larger candle before it, hinting momentum is fading.
Harami is Japanese for 'pregnant': a big candle followed by a small one tucked inside its body. After a rally, a small down candle inside a big up candle is a bearish harami; after a fall, the reverse is bullish.
It signals a pause and possible change, but is weaker than an engulfing pattern. It is close kin to the inside bar.
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