A Harami is two candles: a large body followed by a small body that sits entirely within the range of the first. It signals a sudden loss of momentum — a bullish harami appears after a downtrend, a bearish one after an uptrend.
How traders read it
- Read it as a potential reversal or a pause in the trend.
- The smaller the inside candle, the sharper the momentum shift.
- It needs confirmation from the following candle to act on.
See it in dtcharts
Turn on candlestick pattern detection in the dtcharts terminal — every harami is marked on the chart with its historical reliability score, so you can judge how often it has actually played out.