Homing Pigeon is a technical indicator that indicates an upcoming trend reversal in the market. Technical analysts consider Homing Pigeons as a highly reliable Indicator. You can make use of this trend reversal indicator using KEEV for an easy and hassle-free trading experience. 

In This Article

What is the Homing Pigeon Indicator? 

How To Analyse a Chart Using the Homing Pigeon Indicator?

How To Use a Homing Pigeon Indicator on KEEV?

Category – Volume

Type – Leading

What is the Homing Pigeon?

Homing Pigeons are two-line candlestick patterns. The candlestick pattern is traditionally considered a bullish reversal pattern by traders. However, testing has shown it may also act as a bearish continuation pattern.

This candlestick pattern usually forms a downtrend and predicts a reversal. The pattern is confirmed by subsequent candlestick patterns, as with the other candlestick patterns.

You won't be able to predict the breakout direction with certainty based on this new development. Despite this, its overall performance is considered to be very reliable.

How to analyse a chart using the Homing Pigeon? 

You can analyse the homing pigeon indicator by using the chart below. 

As you can see, the first and second lines of this chart are both black candles. It is the first candle that engulfs the second candle.

To identify the two candles you can consider using a black candle, such as a Black Candle, Long Black Candle, etc., but it must be long in the first line. And, the second candle can also be any black candle, but either a short line or a long line can be used to identify it. 

Once you identify this pattern, it signals a trend bullish in the market. 

As it reverses the trend your current position helps you take action by using the Homing pigeon indicator. If you are placed in a buying position, then it signals a sell signal. Conversely, if you are placed in a selling position, this indicator signals a buy signal.