The Harami candlestick pattern is a technical analysis tool used in stock market trading and chart analysis. "Harami" is a Japanese word that means "pregnant," and the pattern is named as such because it consists of two candlesticks, where the second candlestick is smaller and contained within the body of the first candlestick, resembling a pregnant woman.

The Harami pattern can be bullish or bearish, depending on the preceding trend. Here's a breakdown of both types:

1. Bullish Harami: The first candlestick is a large bearish (downward) candle, indicating a strong selling pressure. The second candlestick is a smaller bullish (upward) candle, showing that buying pressure is starting to emerge. The body of the second candlestick should be entirely contained within the body of the first candlestick. This pattern suggests a potential reversal of the previous downtrend.
2. Bearish Harami: The first candlestick is a large bullish (upward) candle, indicating a strong buying pressure. The second candlestick is a smaller bearish (downward) candle, showing that selling pressure is starting to emerge. Again, the body of the second candlestick should be entirely contained within the body of the first candlestick. This pattern suggests a potential reversal of the previous uptrend.

Traders often look for confirmation signals or additional technical indicators before making trading decisions solely based on the Harami pattern. These could include trendlines, support and resistance levels, volume analysis, or other candlestick patterns that provide further insights into market sentiment.

It's essential to remember that candlestick patterns alone should not be relied upon entirely for making trading decisions. They are most effective when used in conjunction with other technical analysis tools and indicators to increase the probability of accurate predictions. Traders should consider factors like overall market conditions, volume, and fundamental analysis to complement their candlestick pattern analysis.