Homing Pigeon: Bullish Reversal Pattern

Homing Pigeon is a bullish reversal pattern. It comprises of two red candles. The pattern appears after a clear downtrend.

August 24, 2011 / 11:14 IST

Homing Pigeon is a bullish reversal pattern. It comprises of two black candles. The pattern appears after a clear downtrend. First candle is a long black candle. Second candle is an inside bar, which is also a black candle. Second candle closes inside the body of the first candle.

This pattern is a sign that current trend may be losing steam.

Long positions can be entered into after the high of the first candle is exceeded. Stop loss can be placed below the low of the first candle.

first published: Aug 18, 2011 05:01 pm

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