Harami and Harami Cross Candlestick Patterns

Harami in Japanese language means pregnant. This pattern forms by two candlesticks, the first one is bigger and the other one smaller. The smaller candle is completely engulfed by the body of the first candle. It looks like a pregnant woman looking from the side.

There are two kinds of Harami. The one that forms at the bottom of a bearish market is a Bullish Harami. And the pattern that forms at the top of an uptrend is a Bearish Harami.

Harami is a reversal pattern:

Bullish Harami

Bullish Harami

Bearish Harami

Bearish Harami

There is another kind of Harami which is called “Harami Cross”. This pattern is exactly the same as the regular Harami. The only difference is that in Harami Cross the small candle is a small Doji candle:

Bullish Harami Cross

Bullish Harami Cross

Bearish Harami Cross

Bearish Harami Cross

Although I said that Harami is a reversal pattern, but you have to be careful not to take any position as soon as you see a Harami, because this pattern is not that strong. Only on bigger time frames like weekly and monthly it can be considered as a reliable reversal pattern. I do not trust it on the smaller time frames at all. Even if you trade this pattern on the bigger time frame, having a reasonable stop loss is a must.

The below screenshot shows a Bullish Harami formed on EUR/USD weekly chart. As you see in this case it worked as reversal pattern the price went up strongly after forming this pattern:

EUR/USD Weekly Chart

EUR/USD Weekly Chart

This is another one. Also look at the Dark Cloud Cover:

And this is a Bearish Harami on GBP/USD weekly chart that worked as a reversal pattern strongly:

GBP/USD Bearish Harami

GBP/USD Bearish Harami

Bullish Harami Corss on GBP/USD weekly chart:

Bullish Harami Cross on GBP/USD weekly chart:

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"Whether you think you can, or you think you cannot, you are right." - Henry Ford
    9 Comments:

  1. Joshua June 4, 2014 at 9:31 pm

    Nice work.

    (0)
  2. Larry Porter February 5, 2015 at 10:34 am

    Very helpful.

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  3. Shalewa February 5, 2015 at 1:34 pm

    Thanks for the article. I suppose we will need a confirmation candlestick and the upper Bollinger Band and the lower Bollinger Band for the above pattern to be considered a trade set up? Thanks

    (0)
  4. Shalewa March 4, 2015 at 7:33 am

    Hi Chris,

    Thanks for everything you and the Fxkeys team are doing on this site. I am just going through this article again to learn more about the Harami patterns.

    Please refer to the 4th Chart above –

    (1)Why is the harami called a Bearish Harami Cross (Weekly GBPUSD), I would have thought since the harami cross formed on a bearish market, it would be called ‘bullish harami’ as a reversal pattern?

    (2) Still on the same chart, I suppose when the confirmation candlestick is the same direction with the trend (for example, the confirmation candlestick is a strong bearish candlestick above)the harami would be ignored?

    (3)Please is there a chart in the archives showing how to calculated TP, SL for Harami and harami crosses patterns? If not, thanks. I have an idea from the other SL and TP articles I have read here.

    (4)Is it ok to follow the maximising principle of 5 X Riskier SL when trading harami patterns (weekly/monthly tmeframes) or the reversal pattern is not strong enough?

    Many thanks as always.

    Shalewa

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    • Chris Pottorff March 5, 2015 at 3:28 am

      Hi Shalewa,

      1- You are right. I fixed the typo.

      2- Exactly.

      3- It is exactly like the Engulfing patterns. We use the confirmation candlestick for the stop loss. Indeed, the confirmation candlestick should form an Engulfing pattern.

      4- If there a strong confirmation forms we can do that. However, I have never seen that a Harami pattern works as a too strong signal in Forex market. In stock market it works, but in Forex market it doesn’t, because of the huge liquidity. Engulfing patterns are the ones that works much stronger in forex market. So if the next candlestick engulfs the mother and baby with a good and strong BB breakout, then we can go for it.

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  5. Tafadzwa Chimuriwo April 18, 2015 at 11:39 am

    I once traded using candlestick patterns only. Combining them with bollinger bands is a master-stroke.

    Thank You Chris.

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  6. Chris Long April 21, 2015 at 9:05 pm

    Am finding learning candle stick patterns interesting and helpful.

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  7. Dary Speck May 10, 2015 at 11:20 am

    Thanks Chris, your information is always informative. I have always traded on the 15m charts, verifying direction on the 4h. Mostly I have looked for very small stop loss and from 30 to 50 pips TP. I am trying to transition to your methods. I was trained on the reversal patterns which is basically the same as you are using for the longer time frames. I also try to trade levels as the they tend to work in 3’s interday and also the longer time frames before having pull backs. Your system fits my work schedule much better. Still learning but following your advise. Keep up the good work!

    (0)
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