What is the Homing Pigeon Pattern? The Homing Pigeon is a two-candle bullish reversal pattern that appears during a downtrend and signals that selling pressure may be weakening
First Candle – Strong Selling Pressure A long bearish candle forms during a downtrend, showing strong selling momentum in the market
Second Candle – Smaller Candle Inside The second candle forms inside the body of the first bearish candle, indicating reduced selling pressure and market consolidation
Why Is It Important? The Homing Pigeon pattern suggests that the downtrend may be losing momentum and a potential price reversal could occur
Confirmation & Volume Traders usually wait for a bullish candle after the pattern for confirmation. Increasing volume strengthens the reversal signal