A harami (Japanese for 'pregnant') is a two-candle pattern where a small candle is completely contained within the prior candle's body. A bullish harami appears in downtrends; a bearish harami in uptrends. Haramis signal fading momentum but require confirmation before trading.
Small second candle contained within first candle's body, First candle should be large relative to recent candles, Cross harami (where the small candle is a doji) is a stronger signal, Inside bar is the Western equivalent
Harami at key support/resistance, Cross harami with volume decline on the small candle, Confirmation break above/below the harami range, RSI divergence at the harami location
Break of the harami range determines direction, Stop beyond the opposite side of the range, Target 1.5–2× the harami range as minimum
4H, Daily
Haramis are moderate-strength patterns — add confluence from moving averages, Fibonacci levels, or volume profile for higher conviction.
While not strictly a candlestick pattern, continuation triangles (ascending, descending, symmetrical) are multi-candle patterns where price contracts between converging trendlines. Breakouts from triangles tend to continue the prior trend. Triangles are measured-move patterns — the target equals the height of the triangle projected from the breakout point.
A marubozu is a candle with no wicks (or very small wicks) — the open and close are at the extreme ends. A bullish marubozu opens at low, closes at high. A bearish marubozu opens at high, closes at low. Marubozus represent maximum conviction and can signal the start of a strong momentum move.
An inside bar is a candle completely contained within the range (high to low) of the previous candle. It represents a contraction of volatility and indecision. Inside bars are used as breakout setups — traders wait for price to break above or below the inside bar's range (or the 'mother bar' range) to enter.
Doji and spinning top candles signal indecision between buyers and sellers. A doji has nearly identical open and close prices, while a spinning top has a small body with long wicks on both sides. These patterns are most significant at the end of extended trends where they can foreshadow reversals.