Homing Pigeon Pattern: A Bullish Reversal Signal
What is the Homing Pigeon Pattern?
The Homing Pigeon is a two-candle bullish reversal pattern that appears during a downtrend, signalling a potential slowdown in selling pressure.
First Candle – Strong
Bearish Move
A large bearish candle forms, reflecting strong selling pressure and continuation of the existing downtrend.
Second Candle – Reduced Selling Momentum
A smaller bearish candle forms within the body of the first candle, indicating that sellers are losing control and momentum is weakening.
How Reliable Is It?
The Homing Pigeon is considered a moderate bullish reversal signal. Its reliability improves when it forms near key support levels.
Confirmation & Volume
Traders usually wait for a bullish candle to confirm the reversal. Increasing trading volume during confirmation strengthens the signal.
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