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\n Table of Contents<\/span>\n <\/div>\n - \n
- What is the bullish harami candlestick pattern?<\/a><\/li>\n
- How to identify and use the bullish harami candlestick pattern?<\/a><\/li>\n
- How to trade the bullish harami candlestick pattern?<\/a><\/li>\n
- The bullish harami candlestick pattern – Pros and cons<\/a><\/li>\n
- Bullish Harami Pattern (VIDEO)<\/a><\/li>\n
- Key takeaways<\/a><\/li>\n
- Frequently Asked Questions (FAQs)<\/a><\/li>\n <\/ul>\n<\/div>\n\n\n\n
What is the Bullish Harami Candlestick Pattern?<\/h2>\n\n\n\n
The bullish harami candle pattern is a Japanese candlestick formation<\/a> formed at the bottom of a bearish trend and indicates that the trend is about to reverse.<\/p>\n\n\n\n
In appearance, the pattern consists of two candles one after the other with the first bearish candle having a long body and short upper and lower wicks and the second bullish candle having a very small body. <\/p>\n\n\n\n
The name \u201cHarami<\/strong>\u201d comes from Japanese and means pregnant due to the fact that the formation is similar in appearance to a pregnant woman. There are two types of Harami candle patterns<\/strong>, the bullish and bearish harami candlestick pattern. <\/p>\n\n\n\n
The only difference is that the bearish harami pattern appears at the end of an uptrend and has the opposite outcome that the bullish harami setup.<\/p>\n\n\n\n
How to Identify and Use the Bullish Harami Candlestick Pattern?<\/h2>\n\n\n\n
Generally speaking, the bullish harami is a two candlestick pattern<\/strong> formed at the bottom of a downward trend. The pattern consists of a long bearish candlestick, followed by a bullish candlestick with a small body. The second candle should be around 25% of the length of the previous bearish candle. <\/p>\n\n\n\n
Therefore, to identify the pattern, you need to find a two candle pattern at the bottom of a downward trend with the above features. Let\u2019s see how the pattern looks on a price chart.<\/p>\n\n\n\n
![\"Bullish](\"https:\/\/howtotrade.com\/wp-content\/uploads\/2022\/04\/Bullish-Harami-candlestick-pattern-forex-trading.png\")
<\/figure>\n\n\n\nAs you can see in the GBP\/USD chart<\/strong> above, the first bearish candle has a longer body and appears at the bottom of a downtrend. The following bullish candle has a small body and short lower and upper wicks. Eventually, the trend reversal is confirmed and the price changes direction. <\/p>\n\n\n\n
Here are some rules and techniques you need to follow to use the bullish harami candle pattern:<\/p>\n\n\n\n
- \n
- Identify the bullish harami pattern at the bottom of a downward trend<\/li>\n\n\n\n
- Add another momentum or oscillator indicator to confirm the trend reversal – MACD, RSI, CCI, Stochastic, etc<\/li>\n\n\n\n
- Wait for the next candle following the second bearish candle to close above the highest price <\/li>\n\n\n\n
- Enter a long position with a stop-loss order below the lowest level of the first bearish candlestick<\/li>\n<\/ol>\n\n\n\n
How to Trade the Bullish Harami Candlestick Pattern?<\/h2>\n\n\n\n
Identifying the bullish harami pattern on a trading chart is fairly straightforward and easy. However, finding the pattern is usually not enough and you\u2019ll need to combine it with other indicators in order to confirm the pattern.<\/p>\n\n\n\n
Below, we are going to show you how to confirm the bullish harami pattern and find good entry and exit levels by using the RSI, MACD, and Fibonacci ratios. <\/p>\n\n\n\n
1. The Bullish Harami Chart Pattern with MACD and RSI<\/h3>\n\n\n\n
Since the bullish harami is a trend reversal pattern, you want to confirm the reversal with another momentum indicator. The MACD and RSI are two of the most important momentum indicators that you can use when identifying the bullish harami pattern. <\/p>\n\n\n\n
In the chart below, we added the RSI and MACD so we can confirm the price reversal.<\/p>\n\n\n\n
![\"Bullish](\"https:\/\/howtotrade.com\/wp-content\/uploads\/2022\/04\/Bullish-Harami-candlestick-pattern-MACD-and-RSI.png\")
<\/figure>\n\n\n\nAs seen in the GBP\/USD 30-min chart<\/strong>, the RSI crossover occurs exactly at the same time when the bullish harami appears and is above the 30 level. The MACD crossover<\/a>, on the other hand, occurs even before the pattern occurs which provides a strong indication that the momentum of the bearish trend is over. <\/p>\n\n\n\n
2. The Bullish Harami Chart Pattern with Fibonacci Retracements<\/h3>\n\n\n\n
Using Fibonacci retracement levels in combination with a bullish harami pattern as a trading strategy could be tricky. You\u2019ll have to identify the previous highs and lows of the previous trend to correctly draw Fibonacci levels and occasionally, you might even have to change a timeframe. <\/p>\n\n\n\n
- How to identify and use the bullish harami candlestick pattern?<\/a><\/li>\n
![\"Bullish](\"https:\/\/howtotrade.com\/wp-content\/uploads\/2022\/04\/Bullish-Harami-candlestick-pattern-Fibonacci-retracements.png\")
<\/figure>\n\n\n\n