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Abandoned Baby
Belt Hold
Breakaway
Concealing Baby Swallow
Doji Star
Dragonfly Doji
Engulfing
Gravestone Doji
Hammer
Harami
Harami Cross
Homing Pigeon
Inverted Hammer
Kicking
Ladder Bottom
Mat Hold
Matching Low
Meeting Lines
Morning Doji Star
Morning Star
Piercing Line
Rising Three Methods
Separating Lines
Side by Side White Lines
Stick Sandwich
Three Inside Up
Three Line Strike
Three Outside Up
Three Stars In the South
Three While Soldiers
Tri Star
Unique Three River Bottom
Upside Gap Three Methods
Upside Tasuki Gap

Homing Pigeon
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Pattern: reversal
Reliability: moderate

Identification
A long black day is followed by another black day which gaps opposite the trend and is completely engulfed by the real body of the first day.

The Psychology
In a downtrend or within a pullback of an uptrend, a long black day occurs. The next day’s gap up comes as a surprise to the shorts who thought they were sitting on a great position the previous day, but the stock gives some of its gap up back causing the candle to be filled in. This relaxes the bears and worries the bulls, and this is the exact recipe needed for a possible bounce. Confirmation is needed with a strong following day on solid volume.

The bullish Homing Pigeon is similar to the bullish Harami and bullish Matching Low.



This isn't a great example of a bullish Homing Pigeon, but it at least gives the reader a glimpse at one may look like. MDG was a fairly weak stock, so buying this pattern was risky. In hindsight it turned out to be support, but hindsight is always 20/20.

 

 

 

 

 

 

 

 



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