Bearish Harami: how to confirm a slowdown at the top of an uptrend

The bearish Harami is a two-candle reversal pattern that appears after an uptrend. A long bullish candle is followed by a small bearish candle that fits inside the body of the first one. The small second candle shows that buying momentum has slowed, and many traders read the pattern as an early sign that the uptrend may be ending.

What does a bearish Harami look like?

The pattern forms over two consecutive candles:

• First candle: A long bullish (white or green) candle that continues the existing uptrend.
• Second candle: A small bearish (black or red) candle that is contained within the body of the first candle. It opens below the first candle's close and closes above the first candle's open.

"Harami" is an old Japanese word for "pregnant." The long first candle is the mother, and the small second candle is the baby inside it. The pattern is the reverse of a bearish Engulfing, where the second candle's body is larger than the first and covers it.

What does the pattern tell you?

The first candle shows that buyers are firmly in control. On the next session, prices open lower, inside the previous body, and stay in a narrow range. Buyers fail to push prices to a new high, and the session closes lower than it opened.

The sudden drop in range after a strong move suggests that buying momentum has faded and that the market is unsure of its next step. The pattern does not show strong selling, but it does show that the uptrend has lost its push.

How reliable is the bearish Harami?

The bearish Harami is considered a moderate signal. It shows a pause in buying more than a clear takeover by sellers, so most traders wait for confirmation.

Traders usually look for extra evidence before acting on the signal:

• Prior trend: The pattern only has meaning after a clear uptrend.
• Size of the second candle: The smaller the second body compared with the first, the clearer the loss of momentum.
• Confirmation: A further decline on the next candle, especially a close below the first candle's open, adds weight to the reversal.
• Context: A pattern that forms near a resistance level or in overbought conditions, for example on the RSI, carries more weight.

How does the bearish Harami differ from the bearish Harami cross?

The two patterns share the same structure: a long bullish candle followed by a small candle inside its body. In a bearish Harami, the second candle has a small bearish body. In a bearish Harami cross, the second candle is a Doji, where the open and close are equal or nearly equal. Because a Doji shows even more indecision, many traders consider the Harami cross the stronger of the two signals.

What are the limitations of the pattern?

Like any candlestick pattern, the bearish Harami describes what has happened, not what will happen. A small inside candle often appears as a short pause in a strong uptrend, after which the rise continues. The pattern is also common, so many occurrences have little meaning without context. Traders often combine it with stop-loss levels, for example above the high of the first candle, to limit losses if the reversal fails.

How to find the bearish Harami on TradingView

TradingView can detect this pattern for you on any chart:

• Built-in indicator: Open Indicators and search for Harami (bearish). The indicator marks each occurrence on the chart.
• All candlestick patterns at once: Add the All candlestick patterns indicator to see every supported pattern on one chart and choose which ones to display in its settings.
• Trend filter: In the indicator settings, choose how the prior trend is detected (based on SMA 50, or SMA 50 and SMA 200), or turn trend detection off.
• Alerts: Create an alert on the indicator to get notified when a new pattern forms.

Understanding the bearish Harami

The bearish Harami is a two-candle pattern made up of a long bullish candle and a small bearish candle that sits inside its body. It forms after an uptrend and signals that buying momentum is fading, which may lead to a reversal. It is a moderate signal, so traders usually confirm it with a lower close on the next candle and other indicators before acting on it.