Forex:Harami

The Harami (meaning "pregnant" in Japanese) Candlestick Pattern is a reversal pattern.
The pattern consists of two Candlesticks:

1. Larger Bullish or Bearish Candle (Day 1) 
2. Smaller Bullish or Bearish Candle (Day 2)  

The Harami Pattern is considered either bullish or bearish based on the criteria below: Bearish Harami: A bearish Harami occurs when there is a large bullish green candle on Day 1 followed by a smaller bearish or bullish candle on Day 2. The most important aspect of the bearish Harami is that prices gapped down on Day 2 and were unable to move higher back to the close of Day 1. This is a sign that uncertainty is entering the market. Bullish Harami: A bullish Harami occurs when there is a large bearish red candle on Day 1 followed by a smaller bearish or bullish candle on Day 2. Again, the most important aspect of the bullish Harami is that prices gapped up on Day 2 and price was held up and unable to move lower back to the bearish close of Day 1.
The chart below shows an example of both a bullish and bearish Harami candlestick pattern:





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