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A harami variant where both candles are bearish. The smaller second candle shows selling pressure fading.
The Homing Pigeon is a two-candle bullish reversal pattern where both candles are bearish, but the second candle has a smaller body completely contained within the first. It's essentially a bearish harami — but with both candles being red/bearish.
The pattern is subtle but meaningful. Despite both candles closing lower, the shrinking body on the second candle shows that selling pressure is diminishing. Like a homing pigeon returning home, price is finding its way back to equilibrium — bears are losing their intensity without bulls having taken over yet.
The Homing Pigeon shows bears running out of steam. Candle 1 is a large bearish candle — the downtrend looks strong, sellers are aggressive, and price drops significantly. Fear is in control.
Candle 2 opens within Candle 1's body and closes lower — still bearish. But the body is notably smaller and contained within Candle 1's range. Sellers are present but not pushing with the same conviction. The urgency to sell is fading.
This contraction of bearish range is the signal. When bears can't expand their control even with another bearish candle, exhaustion may be setting in. A bullish confirmation candle following the pattern validates the potential reversal.
Conservative: Enter long when price breaks above Day 1's high.
Aggressive: Enter long at open of Day 3 if it gaps up.
Below the low of the first (larger bearish) candle. The mother candle's low is the line in the sand - a break below continues the downtrend.
T1: Open of the first candle. T2: Previous swing high or nearest resistance. Similar to a bullish harami but with both candles bearish, so confirmation is essential.
Minimum 1:1.5. This is a mild reversal signal - always wait for bullish confirmation on the next candle.
The Homing Pigeon is a subtle pattern that requires confirmation. Unlike dramatic reversals, it simply shows diminishing bearish intensity — the shift hasn't happened yet, but the conditions are forming.
A bullish harami where both candles are bullish. The setup suggests the pullback is just a pause, not reversal.
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