bullish harami

 

A bullish harami is a candlestick pattern that typically indicates a reversal from a downtrend to an uptrend. And it is formed at bottom of the trend characteristics:

1. Two Candles:

• The first candle is a large bearish candle (a red or black candle), which represents a strong downward price movement.

• The second candle is a small bullish candle (a green or white candle), and it is completely contained within the body of the previous bearish candle. This means the open and close of the second candle are within the range of the first candle's body (excluding the shadows).

2. Trend Reversal Signal: The pattern appears during a downtrend and signals that the downtrend may be coming to an end, with a potential reversal to the upside.

3. Confirmation: Although the pattern is a reversal signal, confirmation is often required. A strong bullish follow-through (e.g., another bullish candle) after the harami pattern strengthens the signal.

4. Market Sentiment: The bearish candle shows that sellers were in control, while the small bullish candle suggests that the bears' power may be weakening and buyers might be starting to take control.