Bullish Homing Pigeon Pattern
BULLISH HOMING PIGEON PATTERN (BHPP)
sellers lost their power and enthusiasm
1. Market is on a downtrend;
2. Day 1 has a black candlestick;
3. Day 2 has back candlestick where the real body completely engulfed by the body of Day 1. It is preferred that the shadows of the second body are contained within the first.
The BHPP is an indicator of disparity. In a market that is on a downtrend, we see that there is heavy selling on Day 1, as proven by the long black candlestick. However, the small body of Day 2 shows diminished power and eagerness of the sellers. This suggests a trend reversal.
1. The BHPP is not necessarily an indicator of a rally
2. A confirmation on Day 3 is necessary to check if the downtrend has reversed (through a white stick, a large gap up or a higher close).