Bullish Harami

There are many Japanese words in candlestick charts used by traders to predict trends in particular stocks. This is because the system was invented by ingenious Japanese rice traders in the eighteenth century, who came up with color-coded “candlesticks” to show data from multiple time periods.

A bullish harami (it actually means “pregnant” in Japanese) on a candlestick chart shows a type of reversal pattern trending upward. A red candlestick indicating a downtrend engulfs a smaller, green bullish candlestick signaling the stock may start to go up.

If you drew a circle around the pattern, it might look like a pregnant woman. Might be a good time to take a long position in this stock. Or to start stocking up on diapers.