"Harami" is an old Japanese word for "pregnant". Bodies, which Harami consists of, are of the opposite colors just like in the Engulfing pattern.

The Harami pattern formed either after a downtrend or at a peak after a long uptrend points to a trend weakness and reversal. The color of a small candle does not matter.

When making decisions in the market, a trader should take into account the position of the small candle in regard to the long real body of the preceding candlestick as the position has a considerable impact on the significance of the pattern.

There is Bearish Harami and Bullish Harami

In case of the Bullish Harami pattern, which is formed during a downtrend, the body of a small candle is completely engulfed by the body of a large candle. It means the current trend may change into an uptrend and it will be sensible to go short.

The Bearish Harami formation during an uptrend points to a change to a downtrend, thus providing the opportunity to go long.

Bearish Harami pattern
Bearish Harami pattern
Bullish Harami pattern
Bullish Harami pattern

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