How to Identify it
- A long black day occurs
- The second day is a white day where the real body is completely engulfed by the real body of the
What it Means
After a long black day at the low end of a downtrend, a white candlestick opens higher
than the previous day’s close. The price is driven up, as many shorts are covered, which encourages further buy-ins.
The Harami indicator should be confirmed with the next trading day’s candlestick following the reversal trend.
The Harami pattern is also the first two days of the Three Inside patterns.