The Bearish Harami is the bearish mirror of the Bullish Harami. A small bearish candle is contained entirely within the body of the preceding large bullish candle. It signals that uptrend momentum is stalling, but like its bullish counterpart it requires confirmation before acting.

How to Identify

• Appears at the top of an uptrend
• Candle 1: large bullish green candle (the “mother”)
• Candle 2: small bearish candle whose entire body fits within candle 1’s body
• Only the bodies matter — wicks of candle 2 may extend outside candle 1
• Smaller candle 2 relative to candle 1 = stronger signal
• Best when candle 2 body is ≤25% of candle 1’s body length

Market Psychology

After a strong bullish session, the next day’s range collapses. Bulls couldn’t push price meaningfully higher, and bears managed to close slightly lower. This stalling signals that buying pressure is drying up at elevated prices. The market pauses inside the prior session’s range — a warning that the uptrend may be exhausting, but needs confirmation to become a high-confidence short signal.