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    Homing Pigeon Candlestick

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    Shane Cabingan
    The bullish homing pigeon candlestick pattern consists of two black or filled candles, with the second candle forming a smaller real body within the range of the first candle's body. This pattern indicates a potential weakening of the downtrend and increased likelihood of an upward reversal. Traders can look to enter long positions after the formation of this pattern, with stop losses placed below the low of the second candle to limit potential losses if the reversal does not occur.

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    Homing Pigeon Candlestick

    Uploaded by

    Shane Cabingan
    158 views8 pages
    The bullish homing pigeon candlestick pattern consists of two black or filled candles, with the second candle forming a smaller real body within the range of the first candle's body. This pattern indicates a potential weakening of the downtrend and increased likelihood of an upward reversal. Traders can look to enter long positions after the formation of this pattern, with stop losses placed below the low of the second candle to limit potential losses if the reversal does not occur.

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    The bullish homing pigeon candlestick pattern consists of two black or filled candles, with the second candle forming a smaller real body within the range of the first candle's body. This pattern indicates a potential weakening of the downtrend and increased likelihood of an upward reversal. Traders can look to enter long positions after the formation of this pattern, with stop losses placed below the low of the second candle to limit potential losses if the reversal does not occur.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    158 views8 pages

    Homing Pigeon Candlestick

    Uploaded by

    Shane Cabingan
    The bullish homing pigeon candlestick pattern consists of two black or filled candles, with the second candle forming a smaller real body within the range of the first candle's body. This pattern indicates a potential weakening of the downtrend and increased likelihood of an upward reversal. Traders can look to enter long positions after the formation of this pattern, with stop losses placed below the low of the second candle to limit potential losses if the reversal does not occur.

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    © All Rights Reserved
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    Homing Pigeon

    Candlestick
    Bullish Homing Pigeon

    The bullish homing pigeon is a Both candles in the pattern


    candlestick pattern where one must be black, or filled,
    large candle is followed by a indicating that the closing
    smaller candle with a body is price was lower than the
    located within the range of the opening price.
    larger candle's body.

    The pattern may indicate The Homing Pigeon is a 


    that there is a weakening of two-line bullish
    the current downward trend, counterpart of the 
    which increases the Descending Hawk
    likelihood of an upward
    reversal
    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 After some quieter buying period,
    investors on the market who strongly some buying pressure begins to
    believe that it will continue to fall. When establish itself. Traders assume the
    the first candle of the Homing Pigeon reversal of the trend in the market.
    candlestick pattern is formed, the same This assumption causes a 
    scenario develops. The formation of a gap between the two candlesticks.
    long bearish candle confirms the However, the buying pressure still
    possibility of an upcoming bearish fails to move the market up, hence
    trend. 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.

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