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bullish harami

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Financial Dictionary

Bullish Harami

A candlestick chart pattern in which a large candlestick is followed by a smaller candlestick whose body is located within the vertical range of the larger body. In terms of candlestick colors, the bullish harami is a downtrend of negative-colored (black) candlesticks engulfing a small positive (white) candlestick, giving a sign of a reversal of the downward trend.

Investopedia Commentary

Because the bullish harami indicates that the falling trend (bearish trend) may be reversing, it signals that it's a good time to enter into a long position. The smaller the second (white) candlestick, the more likely the reversal.

Related Links

The Art of Candlestick Charting - Part 1
The Art of Candlestick Charting - Part 2
The Art of Candlestick Charting - Part 3
The Art of Candlestick Charting - Part 4

See also: Bar Chart, Bearish Harami, Bull, Candlestick, Dark Cloud Cover, Harami Cross, Shooting Star, Technical Analysis, Trend Analysis

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