Bullish Harami

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Figure 1. Bullish Harami pattern.

Figure 1. Bullish Harami pattern.

Japanese name: harami
Forecast: bullish reversal
Trend prior to the pattern: downtrend
Opposite pattern: Bearish Harami
Extended pattern: Three Inside Up

Construction:

  • First candle
    • a candle in a downtrend
    • black body
  • Second candle
    • white body
    • candle's body engulfed by the prior (black) candle's body

 


This article is devoted to the Bullish Harami two-line pattern.

The Bullish Harami is a two-line pattern which the black candle's body of the first line engulfs the white candle's body of the second line.

The first line can be any basic candle with a black body, appearing as a long line, i.e.: Black Candle, Long Black Candle, Black Marubozu, Opening Black Marubozu, Closing Black Marubozu. Candles being spinning tops, even with black bodies, cannot appear on the first line.

The second line can be any white basic candle, appearing both as a long or a short line. It can be even a doji candle, except the Four-Price Doji.

The shadows do not matter what is explained in the following article: Two-Line Patterns.

The pattern appears in a downtrend and forecasts its reversal. The Bullish Harami pattern needs confirmation on the subsequent candles.

Morris created the Three Inside Up pattern as a confirmation of the Bullish Harami. The pattern can be confirmed by breaking the nearest resistance zone or a trendline.

If a candle following pattern's appearance closes below the opening price of the second line (i.e. white candle), it is likely that a downtrend will be continued. Conversely, when a candle following the pattern closes above its second line, there is a chance that the downtrend will be stopped.

The one should be careful when the first line of a Bullish Harami has a long black body as it may form a strong resistance zone.

The market context in which a Bullish Harami is being developed is more important than the candles' bodies or shadows length.

 

Figure 2.

Figure 2. The Bullish Harami pattern is confirmed by the White Candle, which is located above the trendline. The White Candle is a part of the Turn Up bullish pattern.

 

Figure 3.

Figure 3. The figure presents that the biggest "problem" of the harami patterns is their first candle. On the chart, we can see that the market could not win with the Black Candle being the first line of the Bullish Harami pattern.

 

Bullish Harami statistics

Below you can find some Bullish Harami pattern statistics calculated by CandleScanner software. To see more detailed statistics, for other markets and periodicity try our CandleScanner software. Prices start at only $10, and you can see more detailed statistics, for other markets and periodicity. Click here to find out more!

Pattern name: Bullish Harami
Scanner settings: daily stocks
Group: S&P500
Number of symbols: 502
Date range: 7/1/1995 - 6/30/2015
Time interval: daily candles
Total number of candlesticks: 2,236,421
Number of occurrences (Bullish Harami): 27,862
Number of occurrences (all candlestick patterns): 638,570
% of occurrences (Bullish Harami): 4.36 %
Average frequency: 80.3
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
36 5,371 7,040 5,125 10,290
% of
Occurrences
0.13 % 19.15 % 25.27 % 18.39 % 37.06 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
44 5,181 5,562 4,286 12,789
% of
Occurrences
0.16 % 18.44 % 19.96 % 15.38 % 46.06 %

 

10 top best performing symbols

Occurrences Statistics 5 candlesticks testing period
(HIGH efficiency)
10 candlesticks testing period
(HIGH efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
APC 61 82.5 36 59.03 % 40 65.57 %
ADI 84 59.9 52 61.90 % 54 64.29 %
TXN 64 78.7 35 54.69 % 41 64.06 %
VLO 80 62.9 43 53.75 % 50 62.50 %
ESV 74 68.0 41 55.41 % 45 60.81 %
ETFC 61 77.9 36 59.02 % 37 60.66 %
NOV 78 60.2 47 60.25 % 47 60.25 %
HAL 60 83.9 33 55.00 % 36 60.00 %
CHK 82 61.4 43 53.65 % 48 59.75 %
CMI 79 63.7 40 50.63 % 47 59.49 %

 

10 top worst performing symbols

Occurrences Statistics 5 candlesticks testing period
(FALSE efficiency)
10 candlesticks testing period
(FALSE efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
TSO 63 79.9 27 42.86 % 27 42.86 %
LRCX 63 79.9 25 39.68 % 25 39.68 %
LVLT 82 52.9 31 36.58 % 31 36.58 %
SCHW 69 73.0 25 36.23 % 25 36.23 %
WDC 80 62.9 28 35.00 % 28 35.00 %
FFIV 60 67.4 19 31.67 % 19 31.67 %
GILD 64 78.6 20 31.25 % 20 31.25 %
YHOO 74 65.4 23 31.08 % 23 31.08 %
ALXN 63 77.3 19 30.16 % 19 30.16 %
SNDK 73 67.7 22 30.14 % 22 30.14 %
Pattern name: Bullish Harami
Scanner settings: daily stocks
Group: S&P500
Number of symbols: 502
Date range: 7/1/2010 - 6/30/2015
Time interval: daily candles
Total number of candlesticks: 614,034
Number of occurrences (Bullish Harami): 6,533
Number of occurrences (all candlestick patterns): 166,328
% of occurrences (Bullish Harami): 3.93 %
Average frequency: 94.0
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
36 1,090 2,045 1,420 1,942
% of
Occurrences
0.55 % 16.13 % 31.30 % 21.74 % 30.28 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
44 1,021 1,511 1,176 2,781
% of
Occurrences
0.67 % 14.96 % 23.13 % 18.00 % 43.24 %

 

10 top best performing symbols

Occurrences Statistics 5 candlesticks testing period
(HIGH efficiency)
10 candlesticks testing period
(HIGH efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
ETFC 17 74.0 13 76.48 % 14 82.36 %
EXPE 16 78.6 10 62.50 % 12 75.00 %
GMCR 15 83.9 6 46.66 % 9 73.33 %
YHOO 18 69.9 10 55.55 % 13 72.21 %
JOY 13 96.8 7 53.85 % 9 69.24 %
VMC 13 96.8 8 61.54 % 9 69.23 %
AVY 16 78.6 9 56.25 % 11 68.75 %
GT 19 66.2 12 63.15 % 13 68.41 %
CHK 21 59.9 10 52.38 % 13 66.67 %
MMM 14 89.9 6 42.86 % 9 64.29 %

 

10 top worst performing symbols

Occurrences Statistics 5 candlesticks testing period
(FALSE efficiency)
10 candlesticks testing period
(FALSE efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
CBG 13 96.8 7 53.85 % 7 53.85 %
WDC 15 83.9 6 40.00 % 6 40.00 %
VTR 16 78.6 6 37.50 % 6 37.50 %
CNX 22 57.2 8 36.36 % 8 31.81 %
CAG 15 83.9 5 33.33 % 5 33.33 %
DAL 18 69.9 6 33.33 % 6 33.33 %
GM 21 55.2 7 33.33 % 7 33.33 %
IVZ 15 83.9 5 33.33 % 5 33.33 %
KEY 15 83.9 5 33.33 % 5 33.33 %
PHM 15 83.9 5 33.33 % 5 33.33 %

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