The Harami Candlestick is a second day tiny candlestick that opens and closes well within the previous day's long body. The first day Long body candlestick indicates the trend of the trading day.This Harami pattern is the mirror image of the Engulfing pattern. Harami pattern indicates that the trading volume slows down until further information becomes available. When Harami pattern occurs in the extreme of the trend, reversal signal was generated.

Important Criteria :

• The first Long body candlestick followed a tiny body candlestick.
• These two candlesticks is in opposite color.
• The opening and closing price of the second day candlestick is completely within the first day long body candlestick.
• The color of the tiny candlestick is not important.

Harami Cross

     When the second day's range appears as a doji candlestick in Harami pattern, this called a Harami Cross ( Haramiyose candlestick ). This is a important reversal sign, especially occurs at an extreme level.

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