What is Rising Harami?
Harami means ‘pregnancy’ in Japanese. Rising Harami is a two-bar pattern in which a small candle appears to be 'pregnant' within a larger candle, signaling the possibility of a reversal in a downtrend.
It is exactly the opposite of Engulfing. In the grip type, the second rod completely surrounds the first rod, but in harami, the second rod is inside the first rod.
Rising Harami Conditions
| Conditions | standards |
|---|---|
| Appearance location | After a downward trend |
| 1 bag | big black candle |
| 2-bag cigar | 1st bar starts within the body |
| 2nd closing price | 1st bar body within closed |
| 2 pack size | Significantly smaller than 1 rod |
Important: The smaller bar 2 is than bar 1, the stronger the signal. Especially if the 2nd peak is Doji → Harami Cross (strongest version)
Rise Harami vs Harami Cross
| rising harami | Harami Cross | |
|---|---|---|
| 2-bag type | small beekeeping | Doji candle |
| Reliability | ⭐⭐⭐ | ⭐⭐⭐⭐ |
| frequency | middle | low |
How to increase trust
Key checkpoints
- The larger the 1st bar: The stronger the selling force, the stronger the meaning of the reversal.
- Near the support line: Confidence soars when it appears above the strong support line.
- Decreased trading volume: If the trading volume of 2 bars is lower than 1 bar → It is a signal of exhaustion of selling power.
- Check next candle: When the 3rd candle closes as a candle, the pattern is confirmed.
Futures trading long strategy
Rising Harami recommends waiting for a confirmation bar rather than entering alone.
How to enter:
- Conservative: After the 2nd candle, enter after confirming that the 3rd candle is closed as a candle.
- Active: Entry with small volume at the closing price of the 2nd bar, additional entry after confirmation of the 3rd bar
Entry: 2-bar closing price or 3-bar opening price
Stop Loss: Below the low of 1 bar
Goal: 1 bag of cigars (harami top) or more
caution
- Harami, which appears in the middle of a strong downward trend, has low reliability.
- If 2 bars appear as trading volume increases, it may be a fake signal.
Related guides
- Bearish Harami Pattern →
- bullish engulfing type (stronger signal) →
- Doji Candle and Harami Cross →
- Liquidation price calculator →