A Harami candlestick pattern constitutes two candles. A larger candle followed by a smaller candle.
The smaller candle rests alongside the midriff of the larger candle. In order for this to occur there needs to have been a gap in prices between the opening price of the second bar and the closing price of the first bar.
A essentially we have a mother candle and an unborn baby candle in the stomach of the first candle.
At bottoms the first candle will be bearish (red). We then see a gap up in price with the second candle being a small candle sitting alongside and inside the body of the first candle.
At tops the first candle will be bullish (green). We then see a gap down in price with the second candle being a small candle sitting alongside and inside the body of the first candle.
The second candle can actually be the same colour or opposite colour to the first candle. It is more likely to be the opposite colour since it will need to be inside the body of the previous candle in order to qualify.
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