Technical analysis · Unit 2 · Candlestick patterns · Chapter 9

Harami: The big move that suddenly stops

What a bullish or bearish harami says about a move running out of steam, how it differs from an engulfing pattern, and why it needs confirmation.

Harami: a big move that suddenly goes quiet

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The teaching chart from this chapter. The interactive chapter hides what happens next and asks you to call it.

Harami is Japanese for "pregnant". A big candle is followed by a small one whose body fits entirely inside the big one’s body, like a baby inside its mother. After a big push, the market suddenly goes quiet.

What to look for

  • Bullish harami: after a fall, a big red day is followed by a small green day inside it.
  • Bearish harami: after a rise, a big green day is followed by a small red day inside it.
  • It shows momentum stalling. It is a gentler signal than an engulfing, so it needs more confirmation.

Harami and engulfing are opposites. In an engulfing the second body is bigger than the first; in a harami it is smaller.

Check yourself

After a fall, yesterday was a big red candle. Today’s small green body sits entirely inside yesterday’s body. What does it suggest?

  1. The selling has stalled: sellers couldn’t follow through
  2. Sellers are getting stronger
  3. Nothing, because small candles never matter
Show the answer

The selling has stalled: sellers couldn’t follow through. After a big red day you would expect sellers to push on. Instead price opened higher, stayed inside yesterday’s body and closed green. The selling ran out of steam, at least for now.

Key takeaway

Selling ran out of steam

The stock slid from about ₹410 to ₹345.1. The second-last day was a big red candle. On the last day price opened higher, stayed inside that candle’s body and closed at ₹349.3. Sellers couldn’t follow through, and price bounced over the next two weeks.

A harami is a pause first and a turn second. Traders often wait for a close above the big candle’s open before trusting it.

Practise Harami, free

Reading about it is step one. In MarketSeekho you see a real NSE chart with the future hidden, call Bull or Bhalu, say why, and get graded on your reasoning, not luck.

Common questions

What is Harami?

Harami is Japanese for "pregnant". A big candle is followed by a small one whose body fits entirely inside the big one’s body, like a baby inside its mother. After a big push, the market suddenly goes quiet.Bullish haramiBearish harami

What should I look for with Harami?

Bullish harami: after a fall, a big red day is followed by a small green day inside it. Bearish harami: after a rise, a big green day is followed by a small red day inside it. It shows momentum stalling. It is a gentler signal than an engulfing, so it needs more confirmation.

How can I practise reading Harami for free?

MarketSeekho has a free four-page chapter on Harami (learn, answer a question, spot it on a chart, then make a call) and daily real-chart practice graded on your reasoning. No sign-up or money needed.