Skip to content

Bullish Harami

A bullish harami is a two-candlestick reversal pattern that appears at the bottom of a downtrend. The first candle is a long bearish body; the second is a small bullish body whose entire real body opens and closes within the first candle's real body, signaling that selling momentum has stalled. The pattern warns that a downtrend is losing fuel but requires third-candle confirmation to distinguish a genuine reversal from a temporary pause.

HOW IT WORKS

The pattern requires a prior downtrend, a large bearish first candle, and a smaller bullish second candle whose open-to-close range fits entirely inside the first candle's real body. Shadows may protrude. Traders commonly require the second candle's body to be less than 50% of the first — the smaller it is, the more abrupt the momentum stall. Confirmation is a third-candle close above the first candle's high; without it, the setup is a pause rather than a reversal. When the second candle is a doji instead of a bullish body, the variant is called a harami cross and carries higher conviction.

IN TAPEBOARD

The Tapeboard live scanner surfaces stocks printing fresh bullish harami setups in real time, filterable by trend location and proximity to key support levels. Traders use the pattern as a timing signal rather than a standalone entry — pairing the harami alert with RSI divergence or a VWAP reclaim on the same bar sharpens the edge. The scanner is most useful for narrowing a watchlist after a broad market flush, where dozens of haramis may print and context filters do the work of separating high-probability setups from noise.

SEE ALSO