Homing Pigeon

Homing Pigeon

The Homing Pigeon Candlestick pattern is a   bullish reversal pattern.It appearance means weakening of the current downtrend.This Candlestick pattern has two black(or red)candlesticks where the price of the stock closed down from the opening price on the candlesticks. This candlestick pattern is the same as Harami candlestick pattern except for the 2 Day’s realbody.

To identify Homing Pigeon Candlestick Reversal Pattern,The following  few criterion required

1.The market must be in a downtrend.

2.The realbody of 1 Day candle is black(or red).

3.The  realbody of the 2 Day candle is also black(or red) and is completely engulfed by the realbody of 1 Day’s candle.(It means that the 2 Day opens higher than the close of the 1 Day’s candle.Also 2 Day’s candle closes lower than the open of the 1 Day’s candle but still closes above the closing price of the 1 Day’s candle.

The following chart of Union Bank stock illustrates the Homing Pigeon Pattern.