1. Bullish Harami
The bullish harami candlestick pattern is a two-candle pattern. The bullish harami pattern is characterised by the formation of a small body (Green) candle before a larger body (Red) candle. The occurrence of this pattern typically occurs at the bottom of the chart and indicates a potential reversal of a bearish trend towards the bullish side.
Bullish harami pattern indicates confusion among the market participants. Also, the bullish harami pattern tells us that the selling pressure is declining and the buyers are slowly taking control over the market.
According to the study titled “Encyclopaedia of Candlestick Charts” by Thomas N. Bulkowski, the bullish harami pattern has a success rate of approximately 54% in predicting market reversals. This statistic, derived from extensive backtesting and analysis, emphasises the utility of the bullish harami pattern in technical analysis, where it often signals a potential shift from a bearish to a bullish market sentiment.
