{"id":17300,"date":"2022-01-21T19:07:54","date_gmt":"2022-01-21T19:07:54","guid":{"rendered":"https://www.5paisa.com/finschool/?post_type=markets\u0026#038;p=17300"},"modified":"2025-12-23T15:24:03","modified_gmt":"2025-12-23T09:54:03","slug":"multiple-candlestick-pattern-part-2","status":"publish","type":"markets","link":"https://www.5paisa.com/finschool/course/technical-analysis-course/multiple-candlestick-pattern-part-2/","title":{"rendered":"Multiple Candlestick Pattern-Part 2"},"content":{"rendered":"\u003cdiv data-elementor-type=\u0022wp-post\u0022 data-elementor-id=\u002217300\u0022 class=\u0022elementor elementor-17300\u0022\u003e\u003csection class=\u0022elementor-section elementor-top-section elementor-element elementor-element-23ba90b elementor-section-full_width tab_container elementor-section-height-default elementor-section-height-default\u0022 data-id=\u002223ba90b\u0022 data-element_type=\u0022section\u0022\u003e\u003cdiv class=\u0022elementor-container 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data-title-link=\u0022study-tab\u0022\u003e\u003cp\u003e\u003cdiv class=\u0027white\u0027 style=\u0027background:rgb(255, 255, 255); border:solid 0px rgb(255, 255, 255); border-radius:0px; padding:0px 0px 0px 1px;\u0027\u003e\u003cdiv id=\u0027text_slider\u0027 class=\u0027owl-carousel sa_owl_theme owl-pagination-true\u0027 data-slider-id=\u0027text_slider\u0027 style=\u0027visibility: visible;visibility:visible;\u0027\u003e\u003cdiv id=\u0027text_slider_slide01\u0027 class=\u0027sa_hover_container\u0027 data-hash=\u0027The-Harami-Candlestick-Pattern\u0027 style=\u0027padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; \u0027\u003e\u003ch2 style=\u0022text-align: left\u0022\u003e\u003cspan style=\u0022color: #000000\u0022\u003e\u003cstrong\u003e9.1 \u003c/strong\u003e\u003c/span\u003e\u003cstrong\u003e\u003cb\u003eThe Harami Candlestick Pattern\u003c/b\u003e\u003c/strong\u003e\u003c/h2\u003e\u003cp\u003e\u003cimg fetchpriority=\u0022high\u0022 decoding=\u0022async\u0022 class=\u0022aligncenter wp-image-76130 size-full\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2022/01/The-Harami-Candlestick-Pattern.png\u0022 alt=\u0022The Harami Candlestick Pattern\u0022 width=\u0022478\u0022 height=\u0022346\u0022 srcset=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2022/01/The-Harami-Candlestick-Pattern.png 478w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/01/The-Harami-Candlestick-Pattern-300x217.png 300w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/01/The-Harami-Candlestick-Pattern-50x36.png 50w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/01/The-Harami-Candlestick-Pattern-100x72.png 100w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/01/The-Harami-Candlestick-Pattern-150x109.png 150w\u0022 sizes=\u0022(max-width: 478px) 100vw, 478px\u0022 /\u003e\u003c/p\u003e\u003cp\u003eThe Harami candlestick pattern is a two-candle formation that signals a potential trend reversal, either bullish or bearish, depending on where it appears on the chart. The word Harami comes from Japanese, meaning “pregnant,” which reflects the visual structure: a small candle nestled inside the body of a larger one.\u003c/p\u003e\u003cp\u003eIt typically appears after a strong price move either upward or downward and reflects a shift in momentum. The first candle is large and dominant, representing the prevailing trend (bullish or bearish), while the second candle is much smaller and completely contained within the body of the first. This smaller candle suggests indecision or weakening pressure from the dominant side. In a bullish Harami, a small Green candle follows a large red one, hinting that sellers are losing control and buyers may step in. Conversely, a bearish Harami features a small red candle inside a large Green one, indicating that buying momentum may be fading. Traders often wait for confirmation from the next candle before acting, as the Harami alone signals hesitation rather than a guaranteed reversal. Let us understand bullish and bearish harami in detail\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\u0027text_slider_slide02\u0027 class=\u0027sa_hover_container\u0027 data-hash=\u0027Bullish-Harami \u0027 style=\u0027padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; \u0027\u003e\u003ch2 style=\u0022text-align: left\u0022\u003e\u003cspan style=\u0022color: #000000\u0022\u003e\u003cstrong\u003e9.2 \u003c/strong\u003e\u003c/span\u003e\u003cstrong\u003e\u003cb\u003eBullish Harami\u003c/b\u003e\u003c/strong\u003e\u003c/h2\u003e\u003cp\u003e\u003cimg decoding=\u0022async\u0022 class=\u0022aligncenter wp-image-76131 size-full\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2022/01/Bullish-Harami.png\u0022 alt=\u0022Bullish Harami\u0022 width=\u0022442\u0022 height=\u0022388\u0022 srcset=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2022/01/Bullish-Harami.png 442w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/01/Bullish-Harami-300x263.png 300w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/01/Bullish-Harami-50x44.png 50w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/01/Bullish-Harami-100x88.png 100w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/01/Bullish-Harami-150x132.png 150w\u0022 sizes=\u0022(max-width: 442px) 100vw, 442px\u0022 /\u003e\u003c/p\u003e\u003cp\u003eThe bullish harami is a classic two-day candlestick pattern that hints at a potential reversal from a downtrend to an uptrend. True to its name, it typically forms near the bottom of a price chart, where selling pressure has dominated and buyers are just beginning to stir.\u003c/p\u003e\u003cp\u003eHere’s how it unfolds:\u003c/p\u003e\u003cul\u003e\u003cli\u003eOn Day 1, you’ll see a long red candle, reflecting strong bearish sentiment and continued downward momentum.\u003c/li\u003e\u003cli\u003eOn Day 2, a small green candle appears its body completely contained within the body of the previous red candle. This smaller candle signals indecision or a pause in selling, suggesting that bears may be losing control.\u003c/li\u003e\u003c/ul\u003e\u003cp\u003eUnlike the engulfing pattern, where the second candle aggressively overtakes the first, the bullish harami is more subtle. It’s like a quiet whisper in the market saying, “The tide might be turning.” Traders often wait for a third candle ideally a strong bullish one to confirm the reversal before entering a long position.\u003c/p\u003e\u003cfigure id=\u0022attachment_76266\u0022 aria-describedby=\u0022caption-attachment-76266\u0022 style=\u0022width: 2782px\u0022 class=\u0022wp-caption aligncenter\u0022\u003e\u003cimg decoding=\u0022async\u0022 class=\u0022wp-image-76266 size-full\u0022 src=\u0022https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-1.png\u0022 alt=\u0022Image 1\u0022 width=\u00222792\u0022 height=\u00221184\u0022 srcset=\u0022https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-1.png 2792w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-1-300x127.png 300w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-1-1024x434.png 1024w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-1-768x326.png 768w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-1-1536x651.png 1536w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-1-2048x868.png 2048w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-1-50x21.png 50w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-1-100x42.png 100w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-1-150x64.png 150w\u0022 sizes=\u0022(max-width: 2792px) 100vw, 2792px\u0022 /\u003e\u003cfigcaption id=\u0022caption-attachment-76266\u0022 class=\u0022wp-caption-text\u0022\u003eImage source: Trading View\u003c/figcaption\u003e\u003c/figure\u003e\u003cfigure id=\u0022attachment_76267\u0022 aria-describedby=\u0022caption-attachment-76267\u0022 style=\u0022width: 2782px\u0022 class=\u0022wp-caption aligncenter\u0022\u003e\u003cimg loading=\u0022lazy\u0022 decoding=\u0022async\u0022 class=\u0022wp-image-76267 size-full\u0022 src=\u0022https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-2.png\u0022 alt=\u0022Image 2\u0022 width=\u00222792\u0022 height=\u00221192\u0022 srcset=\u0022https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-2.png 2792w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-2-300x128.png 300w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-2-1024x437.png 1024w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-2-768x328.png 768w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-2-1536x656.png 1536w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-2-2048x874.png 2048w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-2-50x21.png 50w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-2-100x43.png 100w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-2-150x64.png 150w\u0022 sizes=\u0022(max-width: 2792px) 100vw, 2792px\u0022 /\u003e\u003cfigcaption id=\u0022caption-attachment-76267\u0022 class=\u0022wp-caption-text\u0022\u003eImage source: Trading View\u003c/figcaption\u003e\u003c/figure\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eThe OHLC Data for Day1: 4\u003c/b\u003e\u003c/strong\u003e\u003cstrong\u003e\u003csup\u003e\u003cb\u003eth\u003c/b\u003e\u003c/sup\u003e\u003c/strong\u003e\u003cstrong\u003e\u003cb\u003e Jan 1993\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eOpen\u003c/b\u003e\u003c/strong\u003e : 744.90\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eHigh\u003c/b\u003e\u003c/strong\u003e : 744.90\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eLow\u003c/b\u003e\u003c/strong\u003e:705.00\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eClose :\u003c/b\u003e\u003c/strong\u003e 709.65\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eThe OHLC Data for Day 2 : 11\u003c/b\u003e\u003c/strong\u003e\u003cstrong\u003e\u003csup\u003e\u003cb\u003eth\u003c/b\u003e\u003c/sup\u003e\u003c/strong\u003e\u003cstrong\u003e\u003cb\u003e Jan 1993\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eOpen \u003c/b\u003e\u003c/strong\u003e: 721.20\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eHigh\u003c/b\u003e\u003c/strong\u003e :740.35\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eLow \u003c/b\u003e\u003c/strong\u003e: 721.20\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eClose:\u003c/b\u003e\u003c/strong\u003e 740.35\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eMarket Psychology Behind the Pattern\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cul\u003e\u003cli\u003eIf you observe the market is sliding lower, and bears are in full control, pushing prices down day after day.\u003c/li\u003e\u003cli\u003eA strong red candle forms, making a new low. This reinforces bearish momentum and deepens trader pessimism.\u003c/li\u003e\u003cli\u003eThe market opens higher than P1’s close, which is unexpected. Bears, who anticipated another weak open, are caught off guard.\u003c/li\u003e\u003cli\u003eBulls gain traction throughout the day, and P2 closes positively, forming a small green candle. However, this close is still below P1’s open, keeping the candle nestled inside P1’s body.\u003c/li\u003e\u003cli\u003eThe small green candle looks “pregnant” within the larger red candle, hence the name Harami.\u003c/li\u003e\u003cli\u003eWhile the green candle alone may seem insignificant, its sudden appearance in a bearish environment triggers panic among bears and hope among bulls.\u003c/li\u003e\u003cli\u003eThis emotional shift can accelerate bullish interest, potentially leading to a trend reversal.\u003c/li\u003e\u003c/ul\u003e\u003cp\u003eTrade Setup for Bullish Harami\u003c/p\u003e\u003cp\u003eRisk Taker -Arjun\u003c/p\u003e\u003cp\u003eArjun sees the Harami pattern forming and is quick to act. By the close of 11 Jan, he notices that:\u003c/p\u003e\u003cul\u003e\u003cli\u003eP2 opened higher than P1’s close (721.20 \u0026gt; 709.65)\u003c/li\u003e\u003cli\u003eP2’s close (740.35) is still below P1’s open (744.90)\u003c/li\u003e\u003c/ul\u003e\u003cp\u003eThese two conditions validate the Harami setup. Arjun enters a long position near the close of P2, anticipating a reversal. He places his stop-loss at the lowest low of the pattern, which is ₹705.00 from Day 1. Arjun is betting on early momentum and is comfortable with the risk.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eRisk Averse Trader- Aakash\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003eAakash prefers confirmation. He waits for the next week’s candle to see if the bullish momentum continues. If the following candle closes higher and forms another green candle, he enters a long trade with more confidence. He also uses ₹705.00 as his stop-loss but enters at a slightly higher price, accepting reduced reward for increased certainty.\u003c/p\u003e\u003cp\u003eHere’s another instance where a bullish harami pattern appeared, but the trade resulted in a loss as the stop-loss level was breached.\u003c/p\u003e\u003cfigure id=\u0022attachment_76268\u0022 aria-describedby=\u0022caption-attachment-76268\u0022 style=\u0022width: 1386px\u0022 class=\u0022wp-caption aligncenter\u0022\u003e\u003cimg loading=\u0022lazy\u0022 decoding=\u0022async\u0022 class=\u0022wp-image-76268 size-full\u0022 src=\u0022https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-3.png\u0022 alt=\u0022Image 3\u0022 width=\u00221396\u0022 height=\u0022600\u0022 srcset=\u0022https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-3.png 1396w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-3-300x129.png 300w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-3-1024x440.png 1024w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-3-768x330.png 768w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-3-50x21.png 50w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-3-100x43.png 100w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-3-150x64.png 150w\u0022 sizes=\u0022(max-width: 1396px) 100vw, 1396px\u0022 /\u003e\u003cfigcaption id=\u0022caption-attachment-76268\u0022 class=\u0022wp-caption-text\u0022\u003eImage source: Trading View\u003c/figcaption\u003e\u003c/figure\u003e\u003cp\u003e\u003cstrong\u003e\u003cem\u003e\u003ci\u003eSmall Activity for you\u003c/i\u003e\u003c/em\u003e\u003c/strong\u003e\u003c/p\u003e\u003cfigure id=\u0022attachment_76269\u0022 aria-describedby=\u0022caption-attachment-76269\u0022 style=\u0022width: 2398px\u0022 class=\u0022wp-caption aligncenter\u0022\u003e\u003cimg loading=\u0022lazy\u0022 decoding=\u0022async\u0022 class=\u0022wp-image-76269 size-full\u0022 src=\u0022https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-4.png\u0022 alt=\u0022Image 4\u0022 width=\u00222408\u0022 height=\u00221032\u0022 srcset=\u0022https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-4.png 2408w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-4-300x129.png 300w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-4-1024x439.png 1024w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-4-768x329.png 768w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-4-1536x658.png 1536w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-4-2048x878.png 2048w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-4-50x21.png 50w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-4-100x43.png 100w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-4-150x64.png 150w\u0022 sizes=\u0022(max-width: 2408px) 100vw, 2408px\u0022 /\u003e\u003cfigcaption id=\u0022caption-attachment-76269\u0022 class=\u0022wp-caption-text\u0022\u003eImage source: Trading View\u003c/figcaption\u003e\u003c/figure\u003e\u003cp\u003e\u003cstrong\u003eQ1. What does the \u0026#8216;Harami \u0026#8211; Bull\u0026#8217; candlestick pattern typically indicate in technical analysis?\u003c/strong\u003e\u003c/p\u003e\u003col\u003e\u003cli\u003eA potential Bull Reversal\u003c/li\u003e\u003cli\u003eA continuation of Downtrend\u003c/li\u003e\u003cli\u003eMarket Indecision with no clear direction\u003c/li\u003e\u003cli\u003eA signal to short the stock\u003c/li\u003e\u003c/ol\u003e\u003cp\u003e\u003cstrong\u003eQ2. Around early 2009, the chart shows a marker labeled \u0026#8216;BH\u0026#8217;. What could this signify in the context of candlestick analysis?\u003c/strong\u003e\u003c/p\u003e\u003col\u003e\u003cli\u003eBearish Hammer\u003c/li\u003e\u003cli\u003eBullish Harami\u003c/li\u003e\u003cli\u003eBuy Hold\u003c/li\u003e\u003cli\u003eBreakout High\u003c/li\u003e\u003c/ol\u003e\u003cp\u003e\u003cstrong\u003eQ3. What does a green candlestick generally represent on a weekly chart?\u003c/strong\u003e\u003c/p\u003e\u003col\u003e\u003cli\u003eThe stock has no movement\u003c/li\u003e\u003cli\u003eThe stock closed higher than it opened\u003c/li\u003e\u003cli\u003eThe stock was delisted\u003c/li\u003e\u003cli\u003eThe stock closed lower than it opened\u003c/li\u003e\u003cli\u003eIf a trader sees a Bullish Harami pattern forming after a prolonged downtrend, what is a cautious next step?\u003c/li\u003e\u003cli\u003eIgnore the Pattern and continue to hold short positions\u003c/li\u003e\u003cli\u003eWait for confirmation of reversal before entering a long position\u003c/li\u003e\u003cli\u003eEnter a short position immediately\u003c/li\u003e\u003cli\u003eSell all holdings regardless of trend\u003c/li\u003e\u003c/ol\u003e\u003cp\u003e\u003cstrong\u003eAnswers\u003c/strong\u003e\u003c/p\u003e\u003col\u003e\u003cli\u003e A potential bullish reversal\u003c/li\u003e\u003cli\u003e Bullish Harami\u003c/li\u003e\u003cli\u003eThe stock closed higher than it opened\u003c/li\u003e\u003cli\u003eWait for confirmation of reversal before entering a long position\u003c/li\u003e\u003c/ol\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003e\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\u0027text_slider_slide03\u0027 class=\u0027sa_hover_container\u0027 data-hash=\u0027The-Bearish-Harami\u0027 style=\u0027padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; \u0027\u003e\u003ch2 style=\u0022text-align: left\u0022\u003e\u003cstrong\u003e\u003cspan style=\u0022color: #f1566d\u0022\u003e\u003cspan style=\u0022color: #000000\u0022\u003e9.3 \u003c/span\u003e\u003c/span\u003e\u003c/strong\u003e\u003cstrong\u003e\u003cb\u003eThe Bearish Harami\u003c/b\u003e\u003c/strong\u003e\u003c/h2\u003e\u003cp\u003e\u003cimg loading=\u0022lazy\u0022 decoding=\u0022async\u0022 class=\u0022aligncenter wp-image-76132 size-full\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2022/01/Bearish-Harami.png\u0022 alt=\u0022Bearish Harami\u0022 width=\u0022478\u0022 height=\u0022345\u0022 srcset=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2022/01/Bearish-Harami.png 478w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/01/Bearish-Harami-300x217.png 300w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/01/Bearish-Harami-50x36.png 50w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/01/Bearish-Harami-100x72.png 100w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/01/Bearish-Harami-150x108.png 150w\u0022 sizes=\u0022(max-width: 478px) 100vw, 478px\u0022 /\u003e\u003c/p\u003e\u003cp\u003eThe bearish harami pattern is a two-candle formation that signals a potential reversal from an uptrend to a downtrend. It begins with a strong bullish candle that reflects continued buying momentum. However, on the following day, a small bearish candle forms entirely within the body of the previous bullish candle. This smaller candle suggests hesitation or weakening strength among buyers. The sudden appearance of a red candle in an otherwise bullish environment can unsettle market participants, hinting that sellers may be preparing to take control. While the pattern itself doesn’t guarantee a reversal, it serves as an early warning sign. Traders often wait for confirmation such as a follow-through red candle or a break below support before initiating short positions. The bearish harami is essentially a quiet shift in sentiment, where the market pauses and begins to lean toward the downside.\u003c/p\u003e\u003cp\u003e\u003cimg loading=\u0022lazy\u0022 decoding=\u0022async\u0022 class=\u0022aligncenter wp-image-76270 size-full\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2022/01/Image-5.png\u0022 alt=\u0022Image 5\u0022 width=\u00221396\u0022 height=\u0022882\u0022 srcset=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2022/01/Image-5.png 1396w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-5-300x190.png 300w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-5-1024x647.png 1024w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-5-768x485.png 768w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-5-50x32.png 50w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-5-100x63.png 100w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-5-150x95.png 150w\u0022 sizes=\u0022(max-width: 1396px) 100vw, 1396px\u0022 /\u003e\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eOHLC Data for Day 1 and Day 2\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eDay 1 : 13\u003c/b\u003e\u003c/strong\u003e\u003cstrong\u003e\u003csup\u003e\u003cb\u003eth\u003c/b\u003e\u003c/sup\u003e\u003c/strong\u003e\u003cstrong\u003e\u003cb\u003e February \u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eOpen \u003c/b\u003e\u003c/strong\u003e: 5382.10\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eHigh :\u003c/b\u003e\u003c/strong\u003e 5606.70\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eLow \u003c/b\u003e\u003c/strong\u003e: 5351.40\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eClose \u003c/b\u003e\u003c/strong\u003e: 5564.30\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eDay 2 : 21\u003c/b\u003e\u003c/strong\u003e\u003cstrong\u003e\u003csup\u003e\u003cb\u003est\u003c/b\u003e\u003c/sup\u003e\u003c/strong\u003e\u003cstrong\u003e\u003cb\u003e February \u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eOpen : \u003c/b\u003e\u003c/strong\u003e5561.90\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eHigh : \u003c/b\u003e\u003c/strong\u003e5629.95\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eLow : \u003c/b\u003e\u003c/strong\u003e5405.90\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eClose :  \u003c/b\u003e\u003c/strong\u003e5350.30\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eMarket Psychology Behind the Pattern\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cul\u003e\u003cli\u003eIf you observe the chart above the market is in a strong uptrend, with bulls firmly in control.\u003c/li\u003e\u003cli\u003eOn Day 1 (P1), a long blue candle forms as prices surge to a new high and close positively—reaffirming bullish dominance.\u003c/li\u003e\u003cli\u003eOn Day 2 (P2), the market unexpectedly opens lower, catching bulls off guard and triggering mild panic.\u003c/li\u003e\u003cli\u003eAs the day progresses, the market continues to slide, eventually closing in the red—forming a small bearish candle.\u003c/li\u003e\u003cli\u003eThis sudden shift unsettles bullish traders, prompting many to unwind their long positions.\u003c/li\u003e\u003c/ul\u003e\u003cul\u003e\u003cli\u003eThe expectation is that this negative momentum will continue, making it a potential opportunity to initiate a short trade\u003c/li\u003e\u003c/ul\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eTrade Setup for Bearish Harami\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eRisk Taker -Arjun\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003eArjun is quick to act. He considers shorting the market near the close of P2, but only after validating the pattern using two conditions:\u003c/p\u003e\u003cul\u003e\u003cli\u003eP2’s open must be lower than P1’s close (P2 Open 5561.90 \u0026lt; P1 Close 5564.30)\u003c/li\u003e\u003cli\u003eP2’s close must be below P1’s open ( P2 Close : 5350.30 \u0026lt; P1 Open 5381.10)\u003c/li\u003e\u003c/ul\u003e\u003cp\u003eIf both are satisfied, Arjun sees it as a legitimate bearish harami and enters the trade, aiming to catch the early downside move.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eRisk Averse Trader-Aakash\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003eAakash prefers confirmation. He waits for the next trading day to see if a strong red candle forms, reinforcing the bearish sentiment. Only then does he initiate a short position, accepting a slightly delayed entry for greater certainty.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eStop-Loss Strategy\u003c/b\u003e\u003c/strong\u003e\u003c/p\u003e\u003cp\u003eBoth traders use the highest high between P1 and P2 as their stop-loss level. This protects against false signals and limits downside risk if the market resumes its uptrend. In our example it would be 5629.95.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cem\u003e\u003ci\u003eShort Activity for You\u003c/i\u003e\u003c/em\u003e\u003c/strong\u003e\u003c/p\u003e\u003cfigure id=\u0022attachment_76271\u0022 aria-describedby=\u0022caption-attachment-76271\u0022 style=\u0022width: 2398px\u0022 class=\u0022wp-caption aligncenter\u0022\u003e\u003cimg loading=\u0022lazy\u0022 decoding=\u0022async\u0022 class=\u0022wp-image-76271 size-full\u0022 src=\u0022https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-6.png\u0022 alt=\u0022Image 6\u0022 width=\u00222408\u0022 height=\u00221032\u0022 srcset=\u0022https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-6.png 2408w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-6-300x129.png 300w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-6-1024x439.png 1024w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-6-768x329.png 768w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-6-1536x658.png 1536w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-6-2048x878.png 2048w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-6-50x21.png 50w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-6-100x43.png 100w, https://www.5paisa.com/finschool/wp-content/uploads/2022/01/Image-6-150x64.png 150w\u0022 sizes=\u0022(max-width: 2408px) 100vw, 2408px\u0022 /\u003e\u003cfigcaption id=\u0022caption-attachment-76271\u0022 class=\u0022wp-caption-text\u0022\u003eImage source : Trading view\u003c/figcaption\u003e\u003c/figure\u003e\u003cp\u003eA Bearish Harami pattern appears on the chart after a bullish move. This pattern consists of a large bullish candle followed by a smaller bearish candle that is contained within the previous candle’s body.\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eQuestion:\u003c/b\u003e\u003c/strong\u003e If you’re a trader and you spot this Bearish Harami near a recent high, what would be a cautious next step?\u003c/p\u003e\u003cul\u003e\u003cli\u003eA) Enter a long position\u003c/li\u003e\u003cli\u003eB) Wait for bullish confirmation\u003c/li\u003e\u003cli\u003eC) Consider reducing long exposure or preparing for a reversal\u003c/li\u003e\u003cli\u003eD) Ignore the signal—it’s unreliable\u003c/li\u003e\u003c/ul\u003e\u003cp\u003e\u003cstrong\u003e\u003cb\u003eCorrect Answer:\u003c/b\u003e\u003c/strong\u003e\u003cstrong\u003e\u003cb\u003eC) Consider reducing long exposure or preparing for a reversal\u003c/b\u003e\u003c/strong\u003e\u003cstrong\u003e\u003cb\u003eWhy:\u003c/b\u003e\u003c/strong\u003e A Bearish Harami is a potential reversal signal. It suggests weakening bullish momentum, so managing risk and watching for confirmation is a prudent move.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\u0027text_slider_slide04\u0027 class=\u0027sa_hover_container\u0027 data-hash=\u0027Key-Takeaways \u0027 style=\u0027padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; \u0027\u003e\u003ch2 style=\u0022text-align: left\u0022\u003e\u003cstrong\u003e\u003cspan style=\u0022color: #f1566d\u0022\u003e\u003cspan style=\u0022color: #000000\u0022\u003e9.4 Key Takeaways\u003c/span\u003e\u003c/span\u003e\u003c/strong\u003e\u003cb\u003e\u003c/b\u003e\u003c/h2\u003e\u003cp\u003e\u003cimg loading=\u0022lazy\u0022 decoding=\u0022async\u0022 class=\u0022aligncenter wp-image-76118 size-full\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2022/01/Key-Takeaways-4.png\u0022 alt=\u0022Key Takeaways\u0022 width=\u0022444\u0022 height=\u0022418\u0022 srcset=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2022/01/Key-Takeaways-4.png 444w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/01/Key-Takeaways-4-300x282.png 300w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/01/Key-Takeaways-4-50x47.png 50w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/01/Key-Takeaways-4-100x94.png 100w, https:/www.5paisa.com/finschool/wp-content/uploads/2022/01/Key-Takeaways-4-150x141.png 150w\u0022 sizes=\u0022(max-width: 444px) 100vw, 444px\u0022 /\u003e\u003c/p\u003e\u003cp\u003eThe Harami pattern is a two-candle formation that signals a potential trend reversal. The name comes from a Japanese word meaning \u0026#8220;pregnant,\u0026#8221; which describes its visual structure: a small candle is completely contained within the body of a larger, preceding candle.\u003c/p\u003e\u003cul\u003e\u003cli\u003eThis pattern appears after a strong price move and reflects a shift in momentum. The first large candle represents the prevailing trend, while the second, smaller candle suggests indecision or weakening pressure from the dominant side.\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eBullish Harami\u003c/b\u003e\u003c/strong\u003e: This pattern hints at a potential reversal from a downtrend to an uptrend. It is formed by a long red candle followed by a small green candle whose body is completely contained within the body of the red candle. This suggests that sellers are losing control.\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eBearish Harami\u003c/b\u003e\u003c/strong\u003e: This pattern signals a potential reversal from an uptrend to a downtrend. It begins with a strong bullish candle, followed by a small bearish candle that forms entirely within the body of the previous candle, suggesting that buying momentum may be fading.\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eMarket Psychology\u003c/b\u003e\u003c/strong\u003e: The pattern’s appearance, with a small candle of opposing color, triggers an emotional shift in the market. In a bullish harami, the small green candle in a bearish environment creates hope among bulls and panic among bears. In a bearish harami, the sudden appearance of a small red candle unsettles bullish traders.\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eTrade Setup for a Bullish Harami\u003c/b\u003e\u003c/strong\u003e:\u003c/li\u003e\u003c/ul\u003e\u003cul\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eRisk-Taker (Arjun)\u003c/b\u003e\u003c/strong\u003e: Arjun enters a long position near the close of the second candle (P2) after validating that P2’s open is higher than P1’s close, and P2’s close is lower than P1’s open. His stop-loss is placed at the lowest low of the two-candle pattern.\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eRisk-Averse (Aakash)\u003c/b\u003e\u003c/strong\u003e: Aakash waits for a third candle to confirm the reversal, ideally a strong bullish one, before entering a long trade. He accepts a higher entry price for increased certainty and uses the same stop-loss level.\u003cul\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eTrade Setup for a Bearish Harami\u003c/b\u003e\u003c/strong\u003e:\u003c/li\u003e\u003c/ul\u003e\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eRisk-Taker (Arjun)\u003c/b\u003e\u003c/strong\u003e: Arjun will consider shorting the market near the close of the second day (P2) after validating that P2’s open is lower than P1’s close and P2’s close is below P1’s open.\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eRisk-Averse (Aakash)\u003c/b\u003e\u003c/strong\u003e: Aakash waits for the next trading day to see if a strong red candle forms, reinforcing the bearish sentiment, before initiating a short position.\u003c/li\u003e\u003cli\u003e\u003cb\u003e\u003c/b\u003e\u003cstrong\u003e\u003cb\u003eStop-Loss\u003c/b\u003e\u003c/strong\u003e: For both types of traders, the stop-loss is placed at the highest high between the two candles of the pattern.\u003cul\u003e\u003cli\u003eThe Harami pattern alone signals hesitation rather than a guaranteed reversal, which is why traders often wait for confirmation from the next candle before acting on the signal.\u003c/li\u003e\u003cli\u003eWhile the pattern serves as an early warning sign, it does not guarantee a reversal, and it is possible for a trade based on the pattern to result in a loss if the stop-loss level is breached.\u003c/li\u003e\u003c/ul\u003e\u003c/li\u003e\u003c/ul\u003e\u003cp\u003e\u0026nbsp;\u003c/p\u003e\u003cp\u003e\u0026nbsp;\u003c/p\u003e\u003c/div\u003e\u003c/div\u003e\u003c/div\u003e\u003cscript type=\u0027text/javascript\u0027\u003ejQuery(document).ready(function()  {jQuery(\u0027#text_slider\u0027).owlCarousel({items  :  1,smartSpeed  :  400,autoplay  :  false,autoplayHoverPause  :  false,smartSpeed  :  400,fluidSpeed  :  400,autoplaySpeed  :  400,navSpeed  :  400,dotsSpeed  :  400,dotsEach  :  1,loop  :  false,nav  :  true,navText  :  [\u0027Previous\u0027,\u0027Next\u0027],dots  :  true,responsiveRefreshRate  :  200,slideBy  :  1,mergeFit  :  true,autoHeight  :  true,mouseDrag  :  false,touchDrag  :  true});jQuery(\u0027#text_slider\u0027).css(\u0027visibility\u0027, \u0027visible\u0027);var  owl_goto  =  jQuery(\u0027#text_slider\u0027);jQuery(\u0027.text_slider_goto1\u0027).click(function(event){owl_goto.trigger(\u0027to.owl.carousel\u0027,  0);});jQuery(\u0027.text_slider_goto2\u0027).click(function(event){owl_goto.trigger(\u0027to.owl.carousel\u0027,  1);});jQuery(\u0027.text_slider_goto3\u0027).click(function(event){owl_goto.trigger(\u0027to.owl.carousel\u0027,  2);});jQuery(\u0027.text_slider_goto4\u0027).click(function(event){owl_goto.trigger(\u0027to.owl.carousel\u0027,  3);});var  resize_16677  =  jQuery(\u0027.owl-carousel\u0027);resize_16677.on(\u0027initialized.owl.carousel\u0027,  function(e)  {if  (typeof(Event)  === \u0027function\u0027)  {window.dispatchEvent(new  Event(\u0027resize\u0027));}  else  {var  evt  =  window.document.createEvent(\u0027UIEvents\u0027);evt.initUIEvent(\u0027resize\u0027,  true,  false,  window,  0);window.dispatchEvent(evt);}});});\u003c/script\u003e\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\u0022slides-tab\u0022 class=\u0022clearfix eael-tab-content-item \u0022 data-title-link=\u0022slides-tab\u0022\u003e\u003cp\u003e\u003cdiv class=\u0027white\u0027 style=\u0027background:rgba(0,0,0,0); 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What distinguishes the spike from the other reversal patterns is the absence of a transition period, which is sideways price action on the chart constituting topping or bottoming activity. This type of pattern marks a … \u003ca title=\u0022Multiple Candlestick Pattern-Part 2\u0022 class=\u0022read-more\u0022 href=\u0022https://www.5paisa.com/marathi/finschool/course/technical-analysis-course/multiple-candlestick-pattern-part-2/\u0022 aria-label=\u0022Read more about Multiple Candlestick Pattern-Part 2\u0022\u003eRead more\u003c/a\u003e\u003c/p\u003e","protected":false},"author":1,"featured_media":0,"parent":17280,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"class_list":["post-17300","markets","type-markets","status-publish","format-standard","hentry"],"acf":[],"_links":{"self":[{"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/markets/17300","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/markets"}],"about":[{"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/types/markets"}],"author":[{"embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/users/1"}],"replies":[{"embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/comments?post=17300"}],"version-history":[{"count":20,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/markets/17300/revisions"}],"predecessor-version":[{"id":76033,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/markets/17300/revisions/76033"}],"up":[{"embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/markets/17280"}],"wp:attachment":[{"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/media?parent=17300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/categories?post=17300"}],"curies":[{"name":"wp","href":"https://api.w.org/{rel}","templated":true}]}}