Courses / Candlestick Patterns Masterclass

Harami and Inside Candles

A small candle contained inside the previous large one shows a pause and possible shift.

The harami (Japanese for pregnant) is a small candle whose body is inside the body of the previous large candle. It signals that momentum has stalled.

A bullish harami follows a large bearish candle. A bearish harami follows a large bullish candle. It is weaker than an engulfing pattern.

Treat it as a warning to tighten stops or wait, and act only after a breakout of the mother candle range.

Key takeaways

• Harami = momentum pause
• Weaker than engulfing
• Trade the breakout of the larger candle, not the harami itself

Quiz

• A harami is: Answer: A small candle inside the previous large body. It sits inside the prior body.
• A harami mostly tells you that: Answer: Momentum has paused. It signals a pause.
• How should you trade a harami? Answer: Wait for a break of the mother candle. A breakout gives the direction.

Educational content, not financial advice.