Bullish Homing Pigeon

Just like a homing pigeon that always finds its way, um...home (clever naming), a bullish homing pigeon is a candlestick pattern found on charts used by stock market traders.

Invented by Japanese rice traders in the eighteenth century, candlestick charts pack a lot of data for multiple time frames into simple color-coded “candlesticks.” In a bullish homing pigeon pattern, a long black candlestick can indicate a downtrend as a result of heavy selling on a particular day. However, on the second day, a smaller black candlestick appears, indicating the selling is diminishing, and therefore the trend may go upward.