Bullish harami

In general, a harami is a two-day pattern with the candle of the setup day that's longer than the candle of the signal day. This pattern can almost be considered the opposite of the bullish outside day and be called a bullish inside day.

The first day is very bearish and occurring in a downtrend. On the second day, the bulls take a shot at moving prices higher. There's not too much success because although the second day closes up slightly, it closes lower than the first day's open, and the first day's high is never surpassed. However, it's a day where the bulls may have started to take a stand and stop the current downtrend, because the second day is an up day and the low of the first day isn't penetrated.

Harami is the Japanese word for pregnant; if you draw an outline of the harami pattern, it looks like a pregnant woman.

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