I've noticed that many beginners in crypto trading often overlook one of the most useful technical analysis patterns — harami. It's a Japanese candlestick that looks like a pregnant woman (that's how its name is translated), and it can provide an excellent signal of a trend reversal.

The structure of a harami is quite simple — it requires two candles. The first is large and indicates the direction in which the trend was moving. The second is small, and here’s the key point — it fits completely within the range of the first candle's body. This compression creates the harami pattern, indicating a weakening of the current movement.

There are two main variants. The first is a bullish harami. It forms at the end of a decline, when a red candle downward is followed by a small green candle. This hints that sellers are losing strength and the price may reverse upward. The second is a bearish harami. It appears after an uptrend, when a large green candle is followed by a small red one. Here, the signal is opposite — a decline is expected.

In practical trading, I recommend treating harami as an early warning rather than a signal for immediate entry. It’s best to combine it with other tools — check trading volume, look at RSI or other confirmation indicators. And pay especially close attention to harami if it forms at important support or resistance levels — its reliability is noticeably higher there. Such combinations often provide higher-quality signals.