Candlestick patterns that form within the body of the previous candlestick is call a Harami. Harami means pregnant in Japanese and the second candlestick is tucked inside the first. In most cases, the first candlestick has a much larger body than the second candlestick.
Whether a harami is bullish or bearish, they all have the same appearance. No matter what the color of the first candlestick, the smaller the body of the second candlestick, the greater is the chance for a reversal (e.g. doji, spinning top). In order to identify the bias of a harami, one must, as with other candlestick patterns, observe the preceding trend. Harami are considered potential bullish reversals after a decline, or down-trend, and potential bearish reversals after an advance, or up-trend.
The above is an example of a bullish harami pattern. After a down-trend and a very bearish long black candlestick, a spinning top was formed, creating the harami formation with the previous day’s candlestick. Due to the prevailing down-trend at the time, the harami is thus considered to be a bullish harami. Subsequently, the price reversed and advanced during the next days of trading.