Harami Candlestick Pattern: What It Looks Like and What It Means
A harami is a two-candle pattern in which a small candle sits entirely inside the body (the thick part between the open and the close) of the large candle before it. The small candle shows momentum shrinking after a big move, so a harami is often read as a possible reversal: a hint that a trend may be pausing or turning. It marks a pause more than a hard turn, so it is a prompt to keep watching, not a forecast.
How It Forms
Each candle is one period of trading, and a wick is the thin line out to its high or low. A candle that closes above its open is bullish; one that closes below is bearish. A bullish reversal is a fall that may turn into a rise, and a bearish reversal is the opposite.
A harami comes in two versions. In the bullish version, one long bearish candle ends a fall and a small candle sits inside its body. The bearish version is the mirror image: a long bullish candle ends a rise, followed by a small candle inside it.
The drawing shows the bullish version, with made-up prices:
| Candle | Open | High | Low | Close |
|---|---|---|---|---|
| 1 | $39 | $41 | $33 | $35 |
| 2 | $35 | $37 | $29 | $31 |
| 3 (long) | $31 | $32 | $14 | $16 |
| 4 (harami) | $20 | $27.50 | $18.50 | $26 |
| 5 | $26 | $33 | $24 | $31 |
Candle 3's body runs from $31 down to $16, a drop of $15. Candle 4's body runs from $20 to $26, only $6 tall, and it fits inside that range. Candle 5 closes at $31, back at the top of candle 3's body: the kind of follow-through readers wait for.
How to Read It
- The size gap. A large body followed by a small one shows the push behind the move contracting.
- The location. A harami counts for more at the end of a long run than in the middle of a drift.
- The next candle. A harami is weaker than an engulfing pattern and wants confirmation, such as a following candle that closes in the reversal direction.
What to Watch For
Many haramis are followed by a sideways stretch, not a turn. A harami matters most near a level where price has stalled before, such as support or resistance.
Three look-alikes differ in shape or in candle count:
- An engulfing pattern is the opposite arrangement: the second body covers the first instead of sitting inside it.
- A harami cross has the same setup, but its inside candle is a doji, one whose open and close are nearly equal, so its body is a thin line instead of a small box and the stall reads stronger.
- Three inside up/down is a harami plus a third candle that confirms the turn. It differs by candle count.
Free or Premium
Harami is one of the 10 extended patterns. On charts, its marker appears only after you turn on the opt-in that adds those 10 patterns to the 13 core ones, and that opt-in is part of Rapunzl Premium. Finding it with Rapunzl's Stock Scanner is free.
Try It in Rapunzl
Haramis appear on Candlestick and OHLC charts once two switches are on, both found at Customize Chart → Chart Indicators → Levels, Patterns & AI Charts: Pattern Markers, and the opt-in for the 10 advanced patterns, where Harami sits. Each detection gets a ▲ if it is bullish and a ▼ if it is bearish.
In the Stock Scanner, Harami is listed in both the Bullish candlestick filter and the Bearish candlestick filter, so pick it from either one. For a ready-made start, the idea "Bullish candlestick today" includes company stocks that formed a bullish pattern on the latest day of trading; its note calls patterns hints, not promises.
A 15-Minute Class Activity
Inside, Outside or Neither? Groups of three get six cards of made-up days.
- 3 minutes. Using candles 3 and 4 above, agree on one test: does the second body fit inside the first?
- 6 minutes. Groups draw each card's two bodies as boxes on a number line, then sort the cards into Harami, Engulfing and Neither. Day 1 then Day 2 (open/close, all made up): A $50/$38 then $42/$46. B $20/$30 then $27/$24. C $30/$26 then $24/$33. D $40/$32 then $36/$29. E $15/$25 then $24/$16. F $60/$52 then $52/$44.
- 3 minutes. Check together. A, B and E are haramis (A bullish, B and E bearish) and C is an engulfing pattern. D and F are neither, because the second body pokes outside the first. Ask what B and E need before them to count as bearish haramis. (A rise.)
- 3 minutes. Exit ticket: in one sentence, say why a harami wants a confirming candle.
Related Patterns
- Harami Cross: a harami whose inside candle is a doji.
- Engulfing: the opposite arrangement, where the second body covers the first.
- Three Inside Up/Down: a harami followed by a confirming third candle.
- How to Read a Candlestick Chart: the starting point for reading any two-candle pattern.
Frequently Asked
Questions
A harami is a small candle whose body sits entirely inside the body of the large candle before it. It shows momentum contracting after a big move.
It can be either. After a fall it is read as a possible bullish reversal, and after a rise as a possible bearish one.
No. It is weaker and wants confirmation, because a small candle shows a pause, not a turn.
Add Harami Reading to Your Course With Rapunzl
Want haramis on screen in front of your class? Request a demo and we will show you the charts and simulator. Families can start with our parents page.
Indicators, patterns and examples in this article are for education and are not investment advice or a recommendation to buy or sell any security.
By Nate Thomas, School Partnerships Lead at Rapunzl.