Homing Pigeon - Bullish Candlestick Reversal Pattern

The homing pigeon is a bullish candlestick reversal pattern comprised of two red candlesticks. The first candlestick in the formation is a long red candle which comes after a clear downtrend has been in place. The second candlestick is an inside bar, that is also a red candlestick. This formation is not a strong sign that a reversal is in play, but it is a sign that the current trend may be losing steam. Traders should wait for the high of the first candlestick in the homing pigeon pattern to be exceeded prior to taking a long position. Stops can conversely be placed below the low of the first candlestick.