š Understanding the Bearish Harami Pattern in Trading
š What is a Bearish Harami?
ā¢The Bearish Harami is a 2-candle pattern that signals a possible reversal from an uptrend to a downtrend.
Itās called āHarami,ā which means āpregnantā in Japanese ā the pattern looks like a small candle inside a big one.
šÆļø Structure of the Bearish Harami:
ā¢First Candle ā Large Green (Bullish):
Shows strong upward movement; buyers are in control.
ā¢Second Candle ā Small Red (Bearish):
Forms inside the body of the first candle. It opens and closes within the range of the previous green candle.
š ā”ļø š What It Means:
ā¢The market was going up strongly.
ā¢Then suddenly, a small bearish candle appears ā showing indecision or weakness from buyers.
ā¢This may be the early sign of a trend reversal (price could start falling).
ā
Beginner Tips:
ā¢Use this pattern after an uptrend only.
ā¢The smaller the second candle and the tighter it is within the first, the stronger the signal.
ā¢Always wait for a confirmation candle ā a red candle after the Harami pattern helps confirm the reversal.
ā¢Use other tools like volume, RSI, or moving averages to confirm the signal.
š Simple Example:
ā¢Imagine BNB coin has been rising for 5 days.
On the 6th day:
ā¢It forms a small red candle inside the big green one from the day before.
ā¢Thatās a Bearish Harami ā it means buyers may be losing strength, and sellers may soon take over
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