Understanding the Bullish Harami Candlestick Pattern
đ What is a Bullish Harami?
The Bullish Harami is a 2-candle reversal pattern that appears after a downtrend and signals a possible trend reversal to the upside.
đŻď¸ How it looks:
Candle Description
â˘1st Candle A large red (bearish) candle â shows sellers were strong.
â˘2nd Candle A small green (bullish) candle â fits inside the body of the first candle.
Think of it like this:
đ A small green "baby candle" inside the body of a big red candle.
đ âĄď¸ đ What it Means:
â˘The market was falling (downtrend).
â˘Suddenly, buyers step in and prevent the price from falling further.
â˘The small green candle inside the big red one shows indecision or hesitation.
â˘This hints that the selling pressure may be ending, and a price reversal could be coming.
â Beginner Tips:
Use it after a downtrend only.
â˘Itâs more powerful with high trading volume or on important support zones.
â˘Confirm the signal with the next candle â if it closes green and higher, itâs a stronger confirmation.
đ Example in Simple Terms:
â˘Imagine Bitcoin was falling for 5 daysâŚ
Then suddenly, on day 6:
â˘It opens low but doesnât fall much.
â˘Buyers push it up a little, and it closes within yesterdayâs candle body.
Thatâs a Bullish Harami saying:
đŁď¸ âWait! The bulls might be coming back!â