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Complete Guide to the Bullish Harami Candlestick Pattern (With Real Examples & Trading Tips)

5 min readApr 24, 2024

The Bullish Harami is more than just a technical term — it’s a window into market psychology. Whether you’re trading Nifty 50, Bank Nifty, or blue-chip stocks like Reliance or TCS, understanding this candlestick reversal pattern can help you catch early trend reversals with precision.

Let’s break it down with real examples, smart strategies, and tools like Strike Money to help you confidently spot and trade the bullish harami candlestick pattern.

📊 Pro Tip: Use Strike Money for real-time market charts and technical analysis.

🕯️ What is a Bullish Harami Pattern? (Explained Without the Jargon)

A bullish harami is a two-candle reversal pattern seen on Japanese candlestick charts. It forms when a small green candle appears inside the body of a large red candle, indicating a potential shift from bearish to bullish sentiment.

  • The first candle: Large red, showing strong selling pressure.
  • The second candle: Small green, completely within the range of the red candle.

Harami means “pregnant” in Japanese — the small green candle is “inside” the big red one. It’s a visual sign of indecision followed by potential reversal.

👀 How to Identify a Bullish Harami on Charts Like a Pro

Recognizing a bullish harami becomes second nature once you know what to look for.

  • Spot a strong downtrend.
  • Find a large red candle, followed by a smaller green candle within the prior candle’s body.
  • The smaller candle doesn’t have to be a doji, but low volume and smaller size adds reliability.

📍 Use tools like Strike Money or TradingView to scan Indian stocks. Look for the pattern on daily or 4-hour charts for higher accuracy.

🧠 Why the Bullish Harami Works: The Market Psychology Behind It

The Bullish Harami is a psychological shift:

  • The market was dominated by sellers (big red candle).
  • But the next session shows indecision, possibly from short covering or fresh buying.
  • This uncertainty from bears signals a potential trend reversal.

🧠 As Steve Nison (father of candlestick charting in the West) explained:

“Harami signals a loss of momentum, often the first sign bulls are regaining control.”

In a volatile market like India’s, where FII activity and macro events impact sentiment, spotting this shift early can be game-changing.

📈 Bullish Harami in Action: Real Examples from Indian Stocks

✅ Example 1: Reliance Industries (RELIANCE.NS) — Oct 2023

  • After a 7-day downtrend, a bullish harami formed near ₹2,270.
  • The small green candle was inside a large bearish candle.
  • Within 3 sessions, the stock bounced to ₹2,410 — over 6% gain.

✅ Example 2: Infosys (INFY.NS) — Feb 2024

  • Harami appeared after a 10% drop in 2 weeks.
  • Pattern formed near ₹1,350.
  • Aided by positive earnings news, stock surged to ₹1,520 in 5 days.

🔍 Use Strike Money’s smart filters to catch these setups across the NSE and BSE.

🛠️ How to Trade the Bullish Harami: Entry, Stop Loss & Exit

Trading this pattern requires confirmation — don’t blindly enter on just the pattern.

✅ Trading Steps:

  1. Wait for confirmation: A green candle breaking above the harami high.
  2. Enter long: After the confirmation close.
  3. Place stop-loss: Just below the harami’s low.
  4. Set target: Based on nearest resistance or use risk-reward ratio (1:2 minimum).

🔄 Confirmation Indicators to Use:

  • RSI: Reversal near oversold (below 30) is a strong confluence.
  • MACD crossover
  • Volume spike on the green candle

🎯 Strike Money allows layering these indicators on chart scans — saving you hours of manual effort.

🆚 Bullish Harami vs Bearish Harami: Know the Critical Difference

Though they look similar, the direction and context change everything.

  • Bullish Harami: Appears in a downtrend, signals a potential bullish reversal.
  • Bearish Harami: Appears in an uptrend, signals a potential bearish reversal.

Don’t confuse the two — they can lead to opposite trades if misread.

📘 Related: “Bearish Harami Guide — When to Exit Winning Positions Early”

⚙️ Tools to Spot Bullish Harami Easily (Even if You’re New)

You don’t need to stare at hundreds of charts.

🔍 Best Tools:

  • Strike Money — Offers AI-powered pattern scanning for NSE/BSE stocks.
  • TradingView — Great for multi-timeframe charting.

💡 Strike Money also shows backtested win rates of patterns — useful for strategy validation.

⚠️ Common Mistakes When Trading Bullish Harami (And How to Avoid Them)

Mistakes are costly in markets. Don’t make these:

❌ Entering without confirmation

Let the market prove its intent. No breakout above harami high = no trade.

❌ Ignoring volume

Volume validates sentiment. No volume on the green candle? It might be a fakeout.

❌ Trading in choppy sideways markets

The pattern works best in established trends, not in ranges.

❌ Using it in isolation

Combine with support zones, indicators like RSI or Bollinger Bands.

📊 Research & Statistics: Is the Bullish Harami Reliable?

Several studies have analyzed candlestick effectiveness:

  • Thomas Bulkowski, in Encyclopedia of Candlestick Charts, found:
  • “Bullish Harami has a reversal success rate of around 53% when confirmed with a breakout.”
  • Nison Research International confirms improved accuracy when used with volume confirmation and support zones.

📌 On Nifty 50, backtests using Strike Money in 2023 showed:

  • 65% accuracy on bullish harami when combined with RSI < 35.
  • Avg. move after confirmation: 4.2% within 5 days.

🔮 Does the Bullish Harami Still Work in 2025’s Markets?

Absolutely — market structure evolves, but price action and human psychology remain consistent.

In 2025, with more algorithmic trading and AI-powered tools, the harami may not be enough on its own. But used with volume, support zones, and smart tools, it’s still a powerful signal.

📊 With high FII flows and fast market sentiment shifts in Indian markets, short-term reversals like harami can provide early entries before big moves.

📌 Final Thoughts: Master the Bullish Harami With Confidence

The Bullish Harami isn’t a magic signal — but in the right context, it’s a high-probability edge.

✅ Works best in downtrends
✅ Combine with indicators and support zones
✅ Confirm with volume and price breakout
✅ Use tools like Strike Money to scan and act fast

Practice on charts. Backtest. Trade smart.

❓ Frequently Asked Questions

What timeframe works best for bullish harami?
Daily or 4-hour charts work best for swing and positional trades.

Can I use this pattern in the Indian stock market?
Yes, it’s frequently seen in Nifty, Bank Nifty, and stocks like Reliance, Infosys, and HDFC Bank.

Does this pattern work in crypto and forex?
Yes, but requires higher confirmation due to volatility.

Is volume important in bullish harami?
Absolutely. Without volume, the reversal may lack conviction.

If you’re serious about using candlestick patterns to trade smarter, start with the Bullish Harami, and let tools like Strike Money take your analysis to the next level. 🚀

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Strike Money
Strike Money

Written by Strike Money

Strike is an Indian stock market analytics tool offering real-time insights, proprietary indicators, and advanced features for efficient trading

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