Bullish Harami

AAA

DEFINITION of 'Bullish Harami'

A candlestick chart pattern in which a large candlestick is followed by a smaller candlestick whose body is located within the vertical range of the larger body. In terms of candlestick colors, the bullish harami is a downtrend of negative-colored (black) candlesticks engulfing a small positive (white) candlestick, giving a sign of a reversal of the downward trend.

Bullish Harami

INVESTOPEDIA EXPLAINS 'Bullish Harami'

Because the bullish harami indicates that the falling trend (bearish trend) may be reversing, it signals that it's a good time to enter into a long position. The smaller the second (white) candlestick, the more likely the reversal.

RELATED TERMS
  1. Stick Sandwich

    A technical trading pattern in which three candlesticks form ...
  2. Harami Cross

    A trend indicated by a large candlestick followed by a doji that ...
  3. Dark Cloud Cover

    In candlestick charting, a pattern where a black candlestick ...
  4. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  5. Trend Analysis

    An aspect of technical analysis that tries to predict the future ...
  6. Bull

    An investor who thinks the market, a specific security or an ...
Related Articles
  1. The Basic Language Of Candlestick Charting
    Charts & Patterns

    The Basic Language Of Candlestick Charting

  2. Candlestick Charting: What Is It?
    Charts & Patterns

    Candlestick Charting: What Is It?

  3. Candlestick Charting: Perfecting The ...
    Forex Education

    Candlestick Charting: Perfecting The ...

  4. Candlesticks Light The Way To Logical ...
    Charts & Patterns

    Candlesticks Light The Way To Logical ...

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center