A large bullish candle followed by a small bearish candle contained entirely within its body. Buying has stalled and a pullback or reversal may follow.
How to identify it
- Large bullish candle in an uptrend
- Small bearish candle inside the prior body
- Best near resistance or after an extended move
Entry
Sell below the harami low or the mother candle low.
Stop loss
Above the high of the large bullish candle.
Target
The base of the mother candle, then the next support.
Invalidation
A close above the harami high.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your bearish harami trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.