Bullish homing pigeon patterns are a bullish pattern. They are a two candlestick reversal pattern that forms near support levels. They look like bullish harami’s but are a bit different. The first candle is a big bearish candle. The second smaller bearish candle fits inside the first bearish candle, thus looking like a bullish harami. Look for price to break above second candle and hold to confirm bullish reversal.
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What Is a Bullish Homing Pigeon Pattern?
A bullish homing pigeon pattern consists of two candlesticks that form near support levels where the second candle fits inside the larger first bearish candle. Typically, when the second smaller candle fits inside the first, the price causes a bullish reversal.
These patterns are two day candlestick chart patterns. This pattern signifies the end of a bearish trend along with a bullish reversal.
Basics
Bullish homing pigeon patterns are made up of to candlesticks. The first one is a long bearish candle. The second candle is a smaller bearish candle. The second candle is engulfed by the first candle.
It’s a signal that sellers are losing interest. The momentum of the bearish trend is slowed by the bullish homing pigeon.
The day following the formation of the bullish homing pigeon candle is pretty important. This confirms the reversal. If the day after is made up of a bullish candlestick, traders take it as confirmation of a trend reversal. Some traders even take gap up patterns the next day as confirmation even if the trading session wasn’t particularly bullish.
How to Trade Bullish Homing Pigeon Patterns
- Watch for 1st falling bearish candlestick to form
- Next, watch for 2nd smaller candlestick to fit inside 1st candle
- Then, watch for 3rd candlestick to break above 2nd
- Traders take a long position once price breaks above the 2nd candlestick
- Place stop below the base of the 2nd candle
- Some traders take a short position once price falls below 2nd candle
- Then place stop above the 2nd candle
Technicals
Bullish homing pigeon patterns are small 2-day candlestick patterns that signify a reversal. It’s important to remember that they form inside much larger patterns such as symmetrical triangle patterns. This is a pattern that is a continuation pattern whether bullish or bearish.
If it’s a bearish continuation pattern and the bullish homing pigeon candles form near the apex, if can break down instead of reversing. Hence the importance of seeing large patterns as well as small ones.
