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Bullish homing pigeon is a candlestick trend indicator which marks the end of a downward trend and start of an upward trend. It is a candlestick patter in which a long black (or colored) candlestick is followed by a short black candlestick in a way that the second (daughter) candlestick is located within the rage of first (mother) candlestick.

Bullish homing pigeon patterns look like bullish harami, but here both candlesticks are black in color meaning their closing prices are lower than opening prices. The opening and closing prices of second trading day must be higher than the closing price of first trading day. The lengthy and worst is the downtrend, the more significant is the homing pigeon. Similarly the short the daughter candlestick and the higher its position is, the better its reliability.

Bullish homing pigeon patterns favor most swing traders trading stocks and currencies. It indicates traders to take long positions and to exit existing short positions. But homing pigeons are not considered among most reliable trend indicators, so most traders wait till next day before making a move. The reliability of bullish homing pigeons also increases when they are used in conjunction with other reliable trend indicators.

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