A Bearish Harami is a two-candle pattern where a small bearish candle forms within a larger bullish one, signaling weakening buying pressure and a potential trend reversal.
A Bearish Engulfing is a two-candle pattern where a large bearish candle fully engulfs a smaller bullish one, signaling strong selling pressure and trend reversal.
A Bearish Harami has a small bearish candle within a larger bullish one, while a Bearish Engulfing fully engulfs the prior bullish candle.
Structure:
Bearish Harami shows hesitation and possible reversal, whereas Bearish Engulfing signals strong selling pressure and a clear bearish shift.
Market Signal:
Bearish Harami offers moderate reversal signs needing confirmation, while Bearish Engulfing shows strong reversal with seller control.
Strength of Reversal:
Bearish Harami is useful after mild uptrends, whereas Bearish Engulfing works best after a strong upward move.
Trend Relevance:
Traders see Bearish Harami as an early warning, while Bearish Engulfing is taken as a clear sell signal with strong conviction.
Trader Interpretation:
Bearish Harami often needs further confirmation, whereas Bearish Engulfing can stand alone due to its strong signal.
Confirmation Needed:
Bearish Harami is reliable with added indicators, while Bearish Engulfing is considered dependable even on its own.
Reliability:
In Bearish Harami, the second candle stays within the first, whereas in Bearish Engulfing, it covers the first candle’s full range.
Candle Relationship:
Look for a large bullish candle followed by a smaller bearish one within its body during an uptrend, signalling weakening buying pressure & a potential reversal.
Spot a small bearish candle followed by a larger bullish one that fully engulfs it during a downtrend, indicating strong buyer momentum.