Reading the market regime before prices move
Bearish Harami (Bearish Harami) is the bearish counterpart of Bullish Harami. A small bearish candle whose whole body sits inside the body of the previous large bullish candle. It points to fading uptrend momentum, but it needs confirmation before entry.
The Bearish Harami is a suspicious calm at the top of a rise: a wide green candle, then a small red one contained inside its body. The buying momentum that was eating through ranges has stopped at its limit. It is a warning of fatigue, not a reversal verdict. Use it to manage a winning position: tighten the stop and take partial profit when it appears. Do not short against the trend unless a third candle closes below the small candle's low, with a stop above the large candle's high.
Flipping positions on every Bearish Harami in a strong uptrend: most versions there are pauses the trend swallows within two days. And treating it without looking at volume. A shrinking body with shrinking volume is a natural pause, but a shrinking body with huge volume is silent distribution behind a calm front. The second is the version worth being wary of.
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