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