Harami
A two-candle formation in which a small body sits entirely within the range of the preceding large body.
How it is identified
Test: current body's high and low both fall inside the previous candle's body
Unit
qualitative
In depth
The harami is the inverse of the engulfing formation: instead of a large candle covering a small one, a small candle is contained by a large one. Practitioners read it as momentum pausing rather than reversing, and it is generally regarded as weaker than an engulfing pattern. The Japanese name means pregnant, describing the visual containment. As a description it is precise and testable; as a signal it carries no claim in this dictionary.
Worked example
Day one opens ₹528 and closes ₹494, a ₹34 body. Day two opens ₹502 and closes ₹508, a ₹6 body sitting entirely inside the first. The second day's range covered 18% of the first day's body.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Harami” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.