Homing Pigeon

Candlestick
 Bullish Homing Pigeon
The bullish homing pigeon is a
candlestick pattern where one
large candle is followed by a
smaller candle with a body is
located within the range of the
larger candle's body.
The pattern may indicate
that there is a weakening of
the current downward trend,
which increases the
likelihood of an upward
reversal
Both candles in the pattern
must be black, or filled,
indicating that the closing
price was lower than the
opening price.
The Homing Pigeon is a 
two-line bullish
counterpart of the 
Descending Hawk
 Bullish Homing Pigeon

The first candle of the pattern can be any black

candle appearing on as a long line, i.e.: Black Candle
,

The second candle can be any black candle

appearing both as a short or a long line, i.e. 
Short Black Candle

As a bullish reversal pattern, the Homing

Pigeon needs to be formed in a downtrend because
it predicts its reversal.
 How to trade Homing Pigeon?
In a Homing Pigeon
candlestick pattern, a trader  They can also place
should enter a long position. the stop loss below the
Placing the stop loss below low of the second line
the low of the pattern is a as well. 
wise move.

During a downtrend, traders It is possible that a new trend

should wait for enough for may start after the patter or
the prices to decrease after price may not move at all.
the formation of the Homing Therefore, traders should
Pigeon pattern. Now, they base price target on a well-
should enter a short defined risk-reward, a well-
position, and placing the measured move, or
stop loss above will be a according to a trading
wise decision.  strategy.
 What does Homing Pigeon tell to traders?
There are many bearish traders and
investors on the market who strongly
believe that it will continue to fall. When
the first candle of the Homing Pigeon
candlestick pattern is formed, the same
scenario develops. The formation of a
long bearish candle confirms the
possibility of an upcoming bearish
trend.
After some quieter buying period,
some buying pressure begins to
establish itself. Traders assume the
reversal of the trend in the market.
This assumption causes a 
gap between the two candlesticks.
However, the buying pressure still
fails to move the market up, hence
making the second candle bearish. 
 Key Points

01 02 03 04

The pattern is Bullish homing

A bullish homing The pattern composed of a pigeon patterns
pigeon is an occurs during large real body don't provide
upside reversal downtrends, followed by a profit targets,
pattern. or during smaller real and a stop loss
Although, it can pullbacks body, and both is typically
also be a within an candles are placed below
bearish uptrend. black (filled) or the bottom of
continuation red indicating the pattern after
pattern. the close is an upside move
below the open. is confirmed.