Harami
A two-candle pattern in which a small body sits inside the previous candle's larger body, suggesting the prior move is losing force.
Harami means “pregnant” in Japanese: the first, large candle is the mother, and the second, small candle sits inside its body like a child. A bullish harami appears after a decline (a large bearish candle, then a small candle within its body); a bearish harami appears after a rise. When the second candle is a doji, the pattern is called a harami cross.
The harami is a pattern of slowing down rather than of reversal power. The large candle shows strong movement; the small one shows that the next period couldn't continue it. That makes it a close relative of the inside bar, which compares full ranges instead of bodies.
Because the signal is mild, confirmation matters more than with engulfing patterns. Traders usually want the next candle to break out of the mother candle's range in the reversal direction, and they prefer patterns that form at support or resistance.
The pitfall is treating every small candle after a big one as a harami reversal. Very often the market simply pauses and continues, and on short timeframes such sequences are routine. See the harami guide and the entry on indecision.
GBP/USD drops from 1.2680 to 1.2640 in one M15 candle. The next opens at 1.2641 and closes at 1.2652, entirely inside the previous body. A close above 1.2680 would confirm a bullish reversal.