Bearish Harami: Bearish Reversal Pattern

Bearish Harami is a bearish reversal pattern. It is characterized by a large white candle, followed by a small black candle. The black candle is contained completely within the previous white candle.

The pattern appears in an uptrend. A long white candle is seen, which is followed by a small black candle, which is completely engulfed by the previous day candle. Shadows need not be compulsorily engulfed, but real body should be. Strategy: A confirmation on the third day in the form of black candle, large gap down or a lower close makes sure that uptrend has reversed. Short positions can be initiated post confirmation.