HKUP Chart: BULLISH HOMING PIGEON reversal pattern
Post# of 777
Posted On: 06/29/2014 1:40:42 PM
HKUP Chart: BULLISH HOMING PIGEON reversal pattern formed on the 25th……..the green/white Marubozu candlestick & higher close on the 27th confirmed the pattern……
HKUP closed above the 7 DMA (day moving average) on Friday…….keep an EYE out for the 7 DMA Bullish Crossing the 10 DMA……..this is an early reversal signal………when HKUP forms candles above MA(20) / Middle Bollinger Band a new up trend can begin…
Take a look at April 21st through April 28th……..HKUP found support after a big decline and a bullish reversal followed…….HKUP is currently trading at the same level as April and has once again found support……….if HKUP can break resistance and start a new up trend from the current level a Double Bottom may form………very interesting set up………
Fast Sto, Slow Sto & RSI all have juice to run……..Parabolic SAR is coming down fast & setting up for a Bullish Flip…….MACD & DMI w/ +DI & -DI are both setting up for bullish crossovers……..MA(100) is just below 0.05……….this may prove to be a tough resistance level………when candles form above the 100 DMA it should = Showtime!……………..$$$
http://www.candlesticker.com/Pattern.aspx?lan...ttern=2108
Definition
This pattern is a small black body contained by a prior relatively long black body. It resembles the Harami pattern, except that both bodies are black.
Recognition Criteria
1. The market is characterized by a prevailing downtrend.
2. A black body is observed on the first day.
3. On the second day, we again see a black body which is completely engulfed by the body of the first day.
Pattern Requirements and Flexibility
The Bullish Homing Pigeon consists of two black candlesticks, in which the first day’s black body engulfs the following black body. The first one has to be a normal or long black candlestick. Either the body tops or the body bottoms of the two candlesticks may be at the same level, but whatever the case, the body of the second day should be smaller than the first.
Trader’s Behavior
The pattern is a signal of disparity. In a market characterized by a downtrend, we first see heavy selling reflected by the black body of the first day. However, a smaller body that appears on the second day points to the diminished power and enthusiasm of the sellers thus suggesting a trend reversal.
Buy/Stop Loss Levels
The confirmation level is defined as the last close or the midpoint of the previous black body, whichever is higher. Prices should cross above this level for confirmation.
The stop loss level is defined as the lower of the last two lows. Following the BUY, if prices go down instead of going up, and close or make two consecutive daily lows below the stop loss level, while no bearish pattern is detected, then the stop loss is triggered.
http://stockcharts.com/h-sc/ui?s=HKUP&p=D...5753791671
http://stockcharts.com/h-sc/ui?s=HKUP&p=D...1005211295
HKUP closed above the 7 DMA (day moving average) on Friday…….keep an EYE out for the 7 DMA Bullish Crossing the 10 DMA……..this is an early reversal signal………when HKUP forms candles above MA(20) / Middle Bollinger Band a new up trend can begin…
Take a look at April 21st through April 28th……..HKUP found support after a big decline and a bullish reversal followed…….HKUP is currently trading at the same level as April and has once again found support……….if HKUP can break resistance and start a new up trend from the current level a Double Bottom may form………very interesting set up………
Fast Sto, Slow Sto & RSI all have juice to run……..Parabolic SAR is coming down fast & setting up for a Bullish Flip…….MACD & DMI w/ +DI & -DI are both setting up for bullish crossovers……..MA(100) is just below 0.05……….this may prove to be a tough resistance level………when candles form above the 100 DMA it should = Showtime!……………..$$$
http://www.candlesticker.com/Pattern.aspx?lan...ttern=2108
Definition
This pattern is a small black body contained by a prior relatively long black body. It resembles the Harami pattern, except that both bodies are black.
Recognition Criteria
1. The market is characterized by a prevailing downtrend.
2. A black body is observed on the first day.
3. On the second day, we again see a black body which is completely engulfed by the body of the first day.
Pattern Requirements and Flexibility
The Bullish Homing Pigeon consists of two black candlesticks, in which the first day’s black body engulfs the following black body. The first one has to be a normal or long black candlestick. Either the body tops or the body bottoms of the two candlesticks may be at the same level, but whatever the case, the body of the second day should be smaller than the first.
Trader’s Behavior
The pattern is a signal of disparity. In a market characterized by a downtrend, we first see heavy selling reflected by the black body of the first day. However, a smaller body that appears on the second day points to the diminished power and enthusiasm of the sellers thus suggesting a trend reversal.
Buy/Stop Loss Levels
The confirmation level is defined as the last close or the midpoint of the previous black body, whichever is higher. Prices should cross above this level for confirmation.
The stop loss level is defined as the lower of the last two lows. Following the BUY, if prices go down instead of going up, and close or make two consecutive daily lows below the stop loss level, while no bearish pattern is detected, then the stop loss is triggered.
http://stockcharts.com/h-sc/ui?s=HKUP&p=D...5753791671
http://stockcharts.com/h-sc/ui?s=HKUP&p=D...1005211295
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