I've noticed that many beginners in technical analysis overlook one of the most interesting patterns — harami. It is actually a powerful tool for catching trend reversals. The name comes from Japan and literally means "pregnant," because the second candle visually sits inside the first one, as if "nested" within its body.

The structure is quite simple — the pattern consists of two candles, where the first is large and strong, and the second is much smaller. The first candle shows the strength of the current trend, while the second is the first sign that the energy is running out. When I analyze charts, harami is one of the first signals I pay attention to because it often precedes a reversal.

There are two main types. The first is a bullish harami, which appears after a decline when the price is already pushing downward. The first candle is red and long, and the second is small and green. This indicates that the bears are losing control and the bulls are starting to wake up. The opposite is a bearish harami, seen after an uptrend. Here, the first candle is green and strong, and the second is red and weak, hinting that the bullish trend is losing momentum.

When I trade based on this pattern, I never rely on it alone. Harami is a signal, but not a guarantee. I always confirm with volume or RSI — if the volume drops on the second candle, it increases the likelihood of a reversal. The pattern is especially effective when it forms near support or resistance levels. Reversals happen much more often there, and the movement is usually more pronounced.

In general, if you want to catch reversals earlier than others, pay attention to harami — it’s really worth studying. The pattern works on all timeframes and across different assets, including crypto.