Bullish Harami Candlestick Pattern

Discover a Bullish Harami candlestick pattern strategy with RSI confirmation for S&P 500 Daily charts. Learn entry rules, performance metrics, and how to identi

Published · Updated · Methodology: Technical Indicators

Part of: RSI Strategies

  • Methodology: Technical Indicators
  • Content type: strategy
  • Timeframes: Daily
  • Markets: S&P 500

Indicators used

  • Bullish Harami
  • RSI

Source video

Decoded from: Bullish Harami Candlestick: Definition, Trading Backtest by Quantified Strategies — watch the original

Key timestamps:

  • 0:10 - What is the bullish harami
  • 0:30 - How to identify a bullish harami
  • 1:00 - What does a bullish harami mean
  • 1:30 - Things to keep in mind about the bullish harami
  • 2:00 - Trading rules for backtesting

Strategy overview

The bullish harami is a two-candle reversal pattern: a large bearish candle followed by a small bullish candle whose body sits entirely inside the previous one — a shape read as a down-move losing conviction rather than a confirmed turn. This entry decodes Quantified Strategies' take on it, a channel whose whole identity is running trading folklore through historical data instead of accepting it on reputation, which is why its video is titled "Bullish Harami Candlestick: Definition, Trading Backtest" rather than framed as a setup to trade blind.

What makes this version worth decoding is that it doesn't treat the candle in isolation. The harami is paired with RSI — the bounded 0–100 momentum oscillator built from the balance of recent gains and losses that anchors this concept hub — used as an oversold filter so the pattern only qualifies when price is already stretched to the downside. That pairing is the point: it converts a discretionary "that looks like a bottom" read into a mechanical, repeatable condition on the daily chart, where a reversal candle and a momentum extreme have to line up before anything triggers.

No mechanical rules were extracted from this video, so the value here is the framing rather than a rule sheet: a well-known reversal candlestick gated by an oversold momentum reading, and the discipline of asking whether that combination actually holds up once it is backtested instead of trusting the textbook picture. The source walks from defining and identifying the harami, through what it is meant to signal, to the trading rules it sets up for that backtest.

Topics

bullish harami · candlestick pattern · technical indicators · trading strategy · daily trading · s&p 500 strategy · rsi strategy · stock market strategy · reversal patterns · price action · tradingview strategy · pine script

Frequently asked questions

What is a bullish harami candlestick pattern?

A bullish harami is a two-candle reversal pattern that appears in a downtrend: a large bearish candle followed by a smaller bullish candle whose body is contained within the prior candle's body. It is interpreted as a sign that selling momentum may be fading — not as a confirmed reversal on its own.

Why pair a bullish harami with RSI?

On its own the harami is a visual, discretionary read. Adding RSI as an oversold filter means the pattern only counts when momentum is already stretched to the downside, turning a subjective "looks like a bottom" call into a mechanical condition where two signals have to line up. The video decoded here builds the setup on the daily timeframe.

Is the bullish harami a reliable trading signal?

Candlestick patterns like the harami are context-dependent — the same shape can precede a bounce or fail outright, which is why this source pairs it with a momentum filter and puts the combination through a backtest rather than assuming it works. No specific mechanical rules were extracted from the video, so this page centers on the concept and the backtesting approach rather than a rule set.

How can I test a bullish harami strategy myself?

Backtest it on historical daily data before committing capital, checking how often the pattern precedes real follow-through and how an oversold filter changes the outcome. Strategy Decoder extracts the structure of strategies like this one from video sources so you can study and test them on TradingView.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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