Bullish Harami / 陽のはらみ線
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A two-candlestick pattern appearing at the bottom of a downtrend. The first candle is a large bearish candle and the second is a small bullish candle, with the second candle's body fitting entirely within the first candle's body. It indicates that selling momentum is weakening and buyers are beginning to enter, suggesting the end of the downtrend and a potential upward reversal.
After the harami is confirmed, enter long when the next candle is bullish and exceeds the first bearish candle's open. Waiting one day for confirmation is safer.
Project the first bearish candle's body length upward from the harami pattern's high. Or target the nearest resistance line.
Place a stop-loss slightly below the lower of the first or second candle's low.
Ideally, high volume on the first candle and decreased volume on the second. Decreased volume indicates weakening selling pressure. Volume increase on the next candle enhances reversal reliability.