StockTreding

📉 Understanding the Bearish Harami Pattern in Trading

🔍 What is a Bearish Harami?
•The Bearish Harami is a 2-candle pattern that signals a possible reversal from an uptrend to a downtrend.
It’s called “Harami,” which means “pregnant” in Japanese — the pattern looks like a small candle inside a big one.

🕯️ Structure of the Bearish Harami:
•First Candle – Large Green (Bullish):
Shows strong upward movement; buyers are in control.

•Second Candle – Small Red (Bearish):
Forms inside the body of the first candle. It opens and closes within the range of the previous green candle.

📈 ➡️ 📉 What It Means:
•The market was going up strongly.

•Then suddenly, a small bearish candle appears — showing indecision or weakness from buyers.

•This may be the early sign of a trend reversal (price could start falling).

✅ Beginner Tips:
•Use this pattern after an uptrend only.

•The smaller the second candle and the tighter it is within the first, the stronger the signal.

•Always wait for a confirmation candle — a red candle after the Harami pattern helps confirm the reversal.

•Use other tools like volume, RSI, or moving averages to confirm the signal.

📊 Simple Example:
•Imagine BNB coin has been rising for 5 days.
On the 6th day:

•It forms a small red candle inside the big green one from the day before.

•That’s a Bearish Harami – it means buyers may be losing strength, and sellers may soon take over
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