How Do You Spell HARAMI?

1. Harami, originating from Japanese, is a term used in technical analysis, specifically in candlestick charting, to describe a specific chart pattern. The harami pattern is formed by the combination of two candlesticks, typically indicating a potential reversal in the prevailing trend.

   The harami pattern consists of two candles, with the first being a relatively large candlestick that represents the current trend. The second candlestick is much smaller and is completely engulfed by the body of the larger candlestick. It usually forms within the range of the previous candle, signaling a potential shift in market sentiment.

   The word "harami" translates to "pregnant" or "pregnancy" in Japanese, which alludes to the visual representation of the pattern where the smaller candle is encapsulated within the larger one. This pattern suggests that the buying or selling pressure is diminishing, creating a potential indecision between the bulls and the bears.

   In the context of technical analysis, the harami pattern is widely considered a reversal pattern when it appears after a significant move in the market, potentially indicating a trend reversal. Traders often use the harami pattern as a signal to exit existing positions or to initiate new ones in the opposite direction.

   However, it's important to note that the harami pattern should not be considered in isolation, but rather in conjunction with other technical indicators or chart patterns to increase the accuracy of the signal.

The word "harami" has its origins in Arabic. In Arabic, the term "harami" (حرامي) refers to a thief or a criminal. It stems from the triconsonantal root H-R-M, which is associated with ideas of prohibition, sacredness, and sanctity. The word has been borrowed into various other languages, including Urdu, Hindi, and Persian, where it retained a similar meaning of a thief or a dishonest person.