RE: Chart23 Sep 2025 20:22
BULLISH HARAMI:This pattern consists of a black body and a small white body that is completely inside the range of the black body. When outlined, the pattern resembles a pregnant woman, which is not coincidental. The term "Harami" is derived from an old Japanese word meaning "pregnant." In this analogy, the black candlestick represents "the mother," and the small candlestick represents "the baby."
The Bullish Harami indicates a disparity in the market’s condition. It typically occurs during a downtrend and bearish sentiment, characterized by heavy selling pressure as evidenced by a black candlestick, reinforcing the bearish outlook. However, on the following day, prices open higher or at the previous day’s close, causing concern among short traders. This results in the covering of many short positions, which pushes prices higher. As latecomers attempt to short the trend they previously missed, the rise slows, forming a small white (or green) candlestick. This pattern may signal a trend reversal, as the small real body on the second day suggests diminishing bearish momentum.
The confirmation level is established at either the last closing price or the midpoint of the first black body, whichever is higher. For confirmation, prices must exceed this level.