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Technical Analysis

Harami

Definition

A two-candle pattern where the second candle's body is completely contained within the first candle's body, signaling potential reversal.

Why Harami Matters to Traders

Technical analysis traders rely on Harami to read price action objectively. Knowing exactly what it signals — and what it does not — separates disciplined chart readers from gut-feel traders.

Example

A bearish harami at the swing high provided an early warning of the trend reversal.

How to Use Harami in Live Trading

Harami — Frequently Asked Questions

What does Harami mean in trading?
Harami refers to A two-candle pattern where the second candle's body is completely contained within the first candle's body, signaling potential reversal. It is a technical analysis concept that traders use when reading price action and managing risk on forex, gold, indices, and crypto markets.
Is Harami important for beginners?
Yes. Harami is one of the foundational technical analysis concepts every retail trader should understand before placing real-money trades. SignalPro covers Harami both in the free Trading School lessons and in the AI-generated signal explanations.
How do professional traders use Harami?
Professional and institutional traders treat Harami as one input in a confluence — never a standalone signal. They combine it with higher-timeframe market structure, liquidity analysis, and strict 1% risk-per-trade sizing to produce repeatable results.
Where can I see Harami applied to live trades?
SignalPro's AI signal feed and chart-analysis tools call out Harami setups in real time on EUR/USD, XAU/USD (gold), GBP/USD, USD/JPY, BTC/USD, and 23 other instruments. Free signals include the same reasoning as Premium so you can learn while you trade.

Related Terms

Engulfing PatternInside BarCandlestickReversal
Reviewed by Daniel Godwin (RiffleFx)
Founder, SignalPro Technology · Last updated July 9, 2026

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