A two-candle pattern in which a small second candle sits entirely inside the body of a large first candle. *Harami* means 'pregnant' in Japanese — the first candle carrying the second. The record of a trend that ran out of breath.
The Harami is a two-candle warning pattern. The first candle has a large body. The second is small and sits entirely within the first's body — as though the large candle were carrying the small one. The classical Japanese name reflects that image: harami means pregnant.
It is most usefully understood as the mirror image of the Engulfing. Where the Engulfing has a large second candle overrunning the first, the Harami has the order reversed: a large first candle, a small second nested inside. If the Engulfing is the decisive vote that reverses a trend, the Harami is the first sign that the trend has lost its breath.
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