Harami

Appearance: An unusually large body followed by a small-bodied candle, usually of the opposite color in which the body of the second candle is within the body of the prior candle.

Criteria: The Harami has a large-bodied candle with a small body candle following it, the body of which must be contained within the body of the first candle. The second candle should be the opposite color of the first candle.

Effect: The Harami is a reversal signal and the previous trend has failed to be sustained.

Note: In candlestick descriptions, "white (green)" refers to an up-bar, and "black (red)" refers to a down-bar. Individual traders prefer different bar colors. For example, we personally trade with candles set to green for up and red for down. (TradeStation defaults their Candlesticks to this color convention.) Most related textbooks use white (or green, if color is used) for up and black (or red) for down.