Pattern Type: Reversal (bullish or bearish)
Definition:
A two-candle pattern where the second candle’s body is completely within the range of the first. Indicates slowing momentum.
Key Characteristics:
- Large first candle (the “mother”)
- Second candle with a small body fully inside the first
- Can be bullish or bearish
How to Trade:
Trade only after confirmation — breakout beyond the pattern’s range.
Mistakes:
- Trading Harami in a sideways market
- Assuming the signal is strong without volume
Conclusion:
Works best after prolonged moves.
