Bullish Harami Pattern on a Live Gold Chart

What it shows

Each one gets a blue label marked BH under the low of the second candle.

How Pravex works it out

1. What counts as long or small for the bullish harami moves with the market, since the yardstick is a 14-candle exponential average of body sizes, where a body is the distance from open to close, so a quiet stretch lowers it and a busy one raises it.
2. The bullish harami starts with a falling candle (close below open) whose body is long, above the average.
3. The second candle must be rising and small (below the average), and its body must sit inside the first body: its top no higher than the first open, its bottom no lower than the first close. Its body must also be smaller than the first. Shadows are not tested.
4. For the bullish harami, the trend test runs on the first of the two candles, which by default has to close below its 50-candle simple moving average to count as a downtrend; on the first 49 candles, where the average can’t be measured yet, nothing is marked.
5. Example numbers, not a live price: the first candle falls from 2,015 to 2,003. The second opens at 2,005 and closes at 2,008, so its body of 3 sits inside 2,003 to 2,015.

Settings

Setting	Default	What changing it does
Trend check	SMA50	How the downtrend before the bullish harami is measured on the first candle: SMA50 compares its close with the 50-candle simple average. The choice that adds SMA200 also needs the 50-candle average below the 200-candle one, so fewer bullish harami labels appear, and the last choice turns the check off.
Label colour	Blue (#2196F3)	Change it to tell the bullish harami apart from other patterns on the same chart. It fills the BH label under the low of the last candle; the text stays white.

How traders read it

A harami is a pause after a strong move. The long falling candle shows sellers in full control, then the small candle inside it shows that the next candle could not even reach the last low. It is an early, mild sign, much milder than an engulfing.

Since the second candle is inside the first, the first candle’s range gives you the levels. A close above the first candle’s open, the top of its body, is the usual confirmation that buyers are taking over. A close under the first candle’s low says the fall has resumed.

On gold, a harami often appears after a sharp drop on a data release, when the next hour is calmer. That pause alone is not a turn, so wait for the close beyond the first candle.

When it misleads

Pauses after a fall are common and many of them are followed by more falling, so a bullish harami fails often when the trend is strong. The trend test is one close under the 50-candle average, which a dip in a rising market can meet. The shadows of the second candle can poke outside the first, which makes some labels look less tidy than the textbook drawing. Wait for the close before trusting a bullish harami label on the latest candle, which is checked on each update and can lose its label.

Questions and answers

What is a bullish harami?

Two candles after a fall: a long falling candle, then a small rising candle whose body sits inside the first candle’s body.

Is a harami the same as an inside bar?

Close. An inside bar compares the whole range, highs and lows. A harami in Pravex compares only the bodies, and needs a long first body, a small second one and a fall before it.

Is a bullish harami a strong pattern?

It is one of the milder ones, since it shows a pause rather than buyers taking over. A close above the first candle’s body is the usual confirmation.

What is a harami cross?

The same idea with a doji as the second candle. Pravex has it as a separate pattern, the harami cross.

Related: Harami - Bearish, Harami Cross - Bullish, Engulfing - Bullish, All Candlestick Patterns, every indicator.