# Harami > A harami is a small candle contained inside the previous candle's body, signalling a pause. Learn bullish and bearish harami, the harami cross and how to trade them. Source: https://learn.tradelabsai.com/candlesticks/harami/ Track: Candlesticks · Level: Beginner · Updated: 2026-10-03 Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice. Cite as: TradeLabs Learn, "Harami", https://learn.tradelabsai.com/candlesticks/harami/ A harami is a two candle pattern where a large candle is followed by a small candle whose body sits entirely inside the first candle's body. The name comes from an old Japanese word for pregnant, because the small candle looks like it is carried inside the larger one. A harami signals that the strong move of the first candle has stalled. A **bullish harami** forms after a decline; a **bearish harami** forms after a rise. ## The rules *Figure: The small second body sits inside the large first body.* | Rule | Bullish harami | Bearish harami | |---|---|---| | Prior move | Decline | Rise | | First candle | Long red | Long green | | Second candle | Small body, usually green, inside the first body | Small body, usually red, inside the first body | When the second candle is a doji, the pattern is called a **harami cross**, considered a slightly stronger sign of indecision. See [Doji](https://learn.tradelabsai.com/candlesticks/doji/). ## What a harami tells you The first candle shows strong momentum. The second candle shows that momentum stopped: price opened inside the previous body and stayed contained, with neither side able to push to new ground. The harami is the opposite shape of an engulfing pattern, and it is generally a **weaker** signal: it shows hesitation rather than a decisive takeover. See [Engulfing Patterns](https://learn.tradelabsai.com/candlesticks/engulfing-patterns/). **Example: A bullish harami needing confirmation** A stock falls sharply on day one, from $58.40 to $54.20. On day two it opens at $54.80 and closes at $55.60, staying inside day one's body. Selling has paused. A trader marks the harami but waits: on day three the stock closes at $57.10, above the harami's high, confirming buyers are stepping in. The trader buys with a stop below $54.00. ## Harami and inside bars Western traders call a candle whose entire range (wicks included) sits inside the previous candle's range an **inside bar**. A harami only requires the body to be inside. Inside bars are widely used as compression signals: a break above or below the mother candle's range often starts the next move. See [Compression and Expansion](https://learn.tradelabsai.com/price-action/compression-and-expansion/). ## Confirmation is essential Because the harami shows only a pause, it frequently resolves in the original direction. Traders typically wait for: - **A close beyond the first candle's midpoint or body** in the new direction, or - **A break of the harami candle's high (bullish) or low (bearish)** on the next candle. Location adds weight: a bullish harami at a strong support level, or a bearish harami at resistance after an extended rally, is more meaningful. ## Trading the pattern 1. **Identify** a harami after a clear move into a key level. 2. **Wait for confirmation** in the reversal direction. 3. **Enter** on the confirmation close or on the break of the pattern's range. 4. **Stop** beyond the first candle's extreme, or beyond the harami's range for a tighter, riskier stop. 5. **Target** the next opposing level. Another approach is to trade the break of the whole pattern in either direction, treating it as a compression setup rather than a reversal. ## Common mistakes - **Treating a harami as a strong reversal signal** without confirmation. - **Ignoring trend strength:** in strong trends, harami are often brief pauses before continuation. - **Trading every harami in a choppy range.** ## Frequently asked questions ### What is a bullish harami? A two candle pattern after a decline where a small candle's body is contained within the previous large red candle's body, suggesting selling pressure is easing. ### Is a harami a reliable reversal pattern? It is weaker than engulfing or star patterns and usually needs confirmation from the following candle. ### What is a harami cross? A harami in which the second candle is a doji, showing even sharper indecision after a strong move. Next, learn double rejection patterns: [Tweezer Tops and Bottoms](https://learn.tradelabsai.com/candlesticks/tweezer-tops-and-bottoms/). ## Continue learning - Next lesson: [Tweezer Tops and Bottoms](https://learn.tradelabsai.com/candlesticks/tweezer-tops-and-bottoms/) - Previous lesson: [Piercing Pattern and Dark Cloud Cover](https://learn.tradelabsai.com/candlesticks/piercing-pattern/) - Related: [Piercing Pattern and Dark Cloud Cover](https://learn.tradelabsai.com/candlesticks/piercing-pattern/): The piercing pattern and dark cloud cover are two candle reversals where the second closes past the first candle's midpoint. Learn the rules and how to trade them. - Related: [Engulfing Patterns](https://learn.tradelabsai.com/candlesticks/engulfing-patterns/): An engulfing pattern is a two candle reversal where the second body fully covers the first. Learn bullish and bearish engulfing rules, context and trade setups. - Related: [Doji](https://learn.tradelabsai.com/candlesticks/doji/): A doji forms when open and close are nearly equal, showing indecision. Learn the doji types, dragonfly and gravestone, what they mean and how to trade them. - Related: [Spinning Top](https://learn.tradelabsai.com/candlesticks/spinning-top/): A spinning top has a small body with wicks on both sides, showing indecision. Learn what it means after trends, in ranges and how traders use it for timing. - Related: [Range Structure and Consolidation](https://learn.tradelabsai.com/price-action/consolidation/): Consolidation is when price moves sideways between support and resistance. Learn to identify ranges, trade them, spot breakouts and avoid range traps. - Related: [How to Read Candlesticks](https://learn.tradelabsai.com/candlesticks/how-to-read-candlesticks/): Learn to read candlestick charts: open, high, low and close, bodies and wicks, timeframes, and what a candle tells you about buyers and sellers.