This is another interesting candle pattern formed in the uptrend of the stock market. When ever you notice a large green size candle pattern formed and just after it a red small candle pattern is formed whose opening and closing is inside the opening and closing of the large green candle pattern. We call this pattern as bearish harami pattern and it means market will be reversing to the down trend.
Conditions required for Bearish Harami Pattern:
- Stock should be in the uptrend.
- In the uptrend big green candle with small red candle should be formed together.
- Red candle body should be inside the open and close range of green pattern.
Once you get such confirmation, you can plan to sell or perform short sell of your stocks or shares.