Harami
Definition
A small candle whose body sits entirely inside the prior large candle's body.
Psychology
After a big strong candle, the next one is tiny. The strong move is losing energy.
Real-life analogy
💡 A big parent candle holding a small baby candle — momentum suddenly shrinks.
Confirmation
Break in the reversal direction beyond the mother candle.
Invalidation
Continuation beyond the mother candle in the trend direction.
Historical behaviour
Better as an early warning than a standalone trigger.
Illustrative success rate
~53-58% when confirmed · Medium reliability
Common beginner mistakes
- • Acting before the breakout
- • Ignoring trend context
Quick quiz — did you understand?
1. Is the Harami generally considered bullish, bearish, or neutral?
2. What is the best practice before acting on a Harami?
3. Which is a common beginner mistake with the Harami?
Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.