I've noticed that many beginners in trading overlook a useful candlestick pattern that can provide a strong reversal signal. It's called the Harami pattern — a Japanese candlestick pattern whose name literally translates to "pregnant." Why such a name? Because the second candle appears to be "inside" the first one, visually resembling a rounded figure.

The structure of the Harami is quite simple: two candles, where the first is large and indicates the previous trend direction, and the second is small and entirely contained within the range of the first candle's body. This already hints at a weakening trend. When you see such a pattern, it's worth paying closer attention.

In technical analysis, there are two variants. The first is a bullish Harami, when a large red candle in a downtrend is followed by a small green candle. This occurs at the end of a decline and signals a possible reversal upward. The second is a bearish Harami, when after a green candle, an upward trend, a small red candle appears. This pattern usually hints at a reversal downward.

How to use this in real trading? The Harami pattern is more of an early signal, so you shouldn't rely on it alone. It's better to combine it with trading volume or RSI for confirmation. And yes, if the Harami forms at significant support or resistance levels, it makes the signal much more reliable. Test it out — and you'll see that it really works.