The Harami Pattern

The Harami Pattern

The combination of candle lines in the harami pattern, with its first tall real body followed by a small real body, is the reverse of the engulfing pattern. In the engulfing pattern, a lengthy real body engulfs the preceding small real body.

Another deference between  the harami and engulfing pattern's is that for the two candles of the engulfing pattern, the color of the real bodies should be opposite. This is not necessary for the harami. You should find, however, that in most instances, the real bodys in the harami are oppositely colored. For harami pattern all that is required is that the second real body be within the first real body, even if the shadow of the second day is above or below the prior day's high & low.

The Bullish Harami Pattern: 

The Bullish Harami candle stick pattern indicating that a down trend is in a asset or trend may be reversing. This pattern contained two candle, a small (green or red) real body followed by a red real body. This is not important that the second candle's color of the bullish harami can be green or red. During a bear move, the selling force reflected by a long red real body is followed by the second day's vacillation. This could portend a trend reversal since the second day's small real body is an alert that the bear's power has diminished. Notice the bullish harami in the image, on the second session the upper shadow moved over the prior red real body. This is still a bullish harami because the second session's real body was contained within the first real body.