The Bearish Harami candlestick pattern is a two-candle reversal pattern that appears after an uptrend. It signals that buying strength is slowing down and sellers may soon take control.
To identify a Bearish Harami:
- The first candle is a strong bullish (green) candle.
- The second candle is a small bearish or neutral candle.
- The body of the second candle forms completely inside the body of the first candle.
- The pattern works best near resistance levels or after a strong price rise.
This formation shows hesitation from buyers and is often an early warning of a bearish reversal.
Strong Bearish Candlestick Patterns
Strong bearish candlestick patterns usually form at the top of an uptrend and indicate possible trend reversal. These patterns reflect weakening buying pressure and growing seller strength.
Some commonly used strong bearish patterns include:
- Bearish Harami
- Evening Star
- Shooting Star
- Bearish Engulfing
- Dark Cloud Cover
Among these, the Bearish Harami is especially useful because it is easy to identify and offers early reversal signals when confirmed properly.
How To Trade In Bearish Harami (Forex)
In forex trading, the Bearish Harami pattern works best on higher timeframes such as 1-hour, 4-hour, or daily charts.
Trading steps:
- Confirm that the market is in a clear uptrend.
- Spot the Bearish Harami near resistance or a supply zone.
- Wait for a bearish confirmation candle after the pattern.
- Use indicators like RSI, moving averages, or volume for extra confirmation.
Never trade the pattern alone—confirmation improves accuracy and reduces false signals.
Bearish Harami Entry Point
- Sell Entry:
Enter a sell trade when the next candle closes below the low of the Harami candle. - Stop Loss:
Place stop loss above the high of the first bullish candle. - Target:
Aim for the nearest support level or follow a risk-reward ratio of 1:2 or 1:3.
This strategy provides a clear entry, controlled risk, and profitable potential when the pattern appears at the right market location.
Final Note
The Bearish Harami candlestick pattern is a reliable bearish signal when used with trend direction, confirmation, and proper risk management. With practice and discipline, it can become an effective tool for forex and stock market trading.
- How To Identify Bearish Harami Candlestick Pattern
- Bearish Evening Star Candlestick Pattern: Meaning, Identification & Trading Guide
- Shooting Star Candlestick Pattern: Bullish or Bearish? Complete Guide
- How to Trade the Hanging Man Candlestick Pattern (Bearish & Red Hanging Man Explained)
- How to Trade in Bullish Hammer Candlestick Pattern: Meaning, Psychology
Q1. How can I confirm a bearish harami?
Ans You can confirm a Bearish Harami by checking these key points:
It forms after a clear uptrend
The next candle closes bearish below the Harami candle’s low
Appears near resistance or supply zone
Volume increases on the bearish candle
RSI turns down from overbought levels
When these confirmations align, the Bearish Harami becomes a strong bearish signal.
Q2. What is the psychology of the bearish Harami?
The psychology of the Bearish Harami reflects a shift in market control from buyers to sellers:
1. The first strong bullish candle shows buyers are confident and in control.
2 The small second candle signals hesitation and indecision—buyers fail to push prices higher.
3 This loss of momentum suggests buyers are getting exhausted.
4 Sellers start entering quietly, preparing to take control.
5 If a bearish candle follows, it confirms that sentiment has turned bearish.
In short, Bearish Harami shows weakening bullish strength and the early signs of a possible trend reversal.
Q3. How To Trade In Bearish Harami (Forex)
Ans
1. Confirm the Trend
Make sure price is in a clear uptrend before the pattern forms.
2. Spot the Bearish Harami
Look for a big bullish candle followed by a small candle inside its body, near resistance.
3. Wait for Confirmation
Enter the trade only after the next candle closes bearish.
4. Sell Entry
Place a SELL when the price breaks and closes below the low of the Harami candle.
5. Stop Loss
Keep stop loss above the high of the first bullish candle.
6. Target
Aim for the nearest support or follow a 1:2 or 1:3 risk-reward ratio.
Tip
The Bearish Harami works best when combined with resistance levels, RSI overbought signals, or moving average rejection.
Used with confirmation and risk management, the Bearish Harami can be a reliable forex trading setup.
