Harami — what it is and how to use it in trading
Definition
A Harami ("pregnant" in Japanese) is a two-candle pattern: the second, small candle's body sits fully inside the body of the first, larger, opposite-colored candle. A bullish harami is a small green candle inside a large red one after a decline; a bearish harami is the mirror after a rally.
How it works in the builder
bullish_harami/bearish_harami are boolean operands with no parameters: the check is that the second candle's body fits fully inside the first candle's body (bodies only, not wicks) — the opposite geometric relationship to Engulfing (containment instead of coverage).
What it looks like on the chart
A large candle followed by a small one fully nested inside its body — visually the mirror relationship of Engulfing: a small body inside a big one, not a big body covering a small one.
Typical use
Typical condition: bullish_harami == 1 after a downtrend, ideally paired with an oversold rsi(14) < 30 reading for extra confirmation.
Common pitfalls
A weaker signal than Engulfing since the second candle doesn't need to break beyond the first — usually needs confirmation from the next bar or an extra filter.
This block is available in the strategy builder
137 no-code blocks — build an entry condition with this term and test it on history
Historical results do not guarantee future ones. The service is an informational and analytical tool, not an individual investment recommendation; trades are not executed.