A bearish harami is a two-candle pattern that can appear at the top of an uptrend. A large bullish candle is followed by a small candle whose body sits completely inside the first. It shows that buying has suddenly stalled. Treat it as a warning, and wait for the next candle before acting.
What a bearish harami looks like
- Candle one: a long bullish (green or white) candle, in line with the uptrend.
- Candle two: a small candle, usually bearish, whose body sits entirely inside the body of candle one.
If the second candle is a doji, the pattern is called a bearish harami cross.
What it tells you
After a strong up day, the next session cannot make any progress. It stays inside the previous body and closes lower than it opened. Buyers have lost their push. That is often how tops begin, but many bearish haramis are just brief pauses in an uptrend.
How to trade a bearish harami
- Wait for confirmation: a following candle that closes below the low of the pair, or below the bottom of the first candle's body.
- Check the location: near resistance, a falling trend line or after a long rally, the pattern means more.
- Action: take profits on long positions, tighten stops, or (for experienced traders) go short.
- Stop for shorts: above the high of the two candles.
A candle pattern on its own is weak evidence. It matters most when it forms at a level that already matters, such as support, resistance, a trend line or a moving average, and when the next candle confirms it.
Bearish harami vs bearish engulfing
In a bearish harami, the second candle is small and inside the first. In a bearish engulfing pattern, the second candle is a large bearish candle that wraps around the first. The engulfing version is usually the stronger warning.
Related guides
- Bullish harami
- Engulfing patterns
- Essential candlestick patterns
- Morning star and evening star
- Support and resistance zones
This guide is for education only and is not financial advice. Trading carries risk; you can lose more than you expect.