Advanced Candlestick

Patterns

Humayun Kabir Bada

Homing pigeon
Belt Hold
Concealing Baby Shallow
Harami Cross
Ladder Bottom
Mat Hold
Matching Low
Meeting Lines
Stick Sandwich
Upside Tasuki Gap
 Homing
pigeon
The bullish homing pigeon is a candlestick pattern where one large
candle is followed by a smaller candle with a body located within the
range of the larger candle's body. Both candles in the pattern must be
black, or filled, indicating that the closing price was lower than the
opening price.

This pattern may indicate that there is a weakening of the current

•A bullish homing pigeon is an upside reversal pattern, although it can also be a bearish continuation pattern.
•This candlestick pattern occurs during downtrends, or during pullbacks within an uptrend.
•It is composed of a large real body followed by a smaller real body, and both candles are black (filled) or red
indicating the close is below the open.
•Bullish homing pigeon patterns don't provide profit targets, and a stop loss is typically placed below the bottom of
the pattern after an upside move is confirmed.
 Belt
Hold
Essential Conditions
The belt hold candlestick does not trade lower than its opening price. (i.e., no lower
shadow)
The belt hold candlestick bar must be bullish.
The previous candlestick must be bearish.

Optional Conditions
The belt hold candlestick must close within the body of the previous candlestick.
The belt hold candlestick should close near its high.
The belt hold candlestick must open lower than the low of the previous candlestick.

Essential Conditions
The belt hold candlestick does not trade higher than its opening price. (i.e., no
upper shadow)
The belt hold candlestick must be bearish.
The previous candlestick must be bullish.

Optional Conditions
The belt hold candlestick must close within the body of the previous candlestick.
The belt hold candlestick should close near its low. (i.e., little lower shadow)
The belt hold candlestick must open higher than the high of the previous
candlestick.
 Belt
Hold
Trading Tips for the Belt Hold Pattern
Here are some tips for trading the Belt Hold pattern:
[Link]: Always seek additional confirmation, either from the
subsequent candlestick or from another technical indicator. This will
help to avoid false signals.
[Link]-Loss: Set up a stop-loss order just beyond the extreme end of
the Belt Hold candle. This action will limit potential losses if the trend
does not reverse as anticipated.
[Link]: Establish a target for taking profits based on prior resistance
(for a bullish reversal) or support levels (for a bearish reversal).

Let’s go back to the basics to understand what the belt hold pattern means.
The shaved bottom or top is the most significant feature of a belt hold candlestick.

Consider a bullish belt hold. It is a big show of bullish force. It is telling you that the buying
pressure is so overwhelming that the sellers could not gain any ground.

The belt hold pattern has added significance when you find it in the daily timeframe. It
represents a session that has moved relentlessly in one direction since its opening.
Concealing Baby Shallow
Trade Entry
The pattern occurs after the creation of the fourth candle – the engulfing candle;
however, this is not enough to enter a trade. In order to buy a stock using the
formation, you need to identify a close above the upper body of the engulfing
candle (fourth candlestick).

It is not mandatory that the next candle close above the fourth candlestick, as it
could take time for the breakout pattern to develop.

Concealing Baby Swallow Pattern

In the 2nd image, we see the confirmation comes with the fifth
candlestick.

Notice how the bullish candle closes above the body of the engulfing. This
confirms the validity of the pattern.

This would be an opportunity for you to take a long position

Stop Loss
Although the concealing baby swallow is a very high probability trade, you should never place a
trade without a stop loss order.

You should always place your stop loss order below the lowest point of the pattern. This is the
area below the lower candlewick of the 4rd candle – the engulfing candle.
The minimum profit target of the
concealing baby swallow is equal to the size
of the pattern.
To measure the size of the pattern, you need
to take the distance between the first
Marubozu and the lower candlewick of the
engulfing candle.
After you measure this distance, you need to
apply it upwards starting from the lower
point of the engulfing candle. When the price
action breaks the upper body of the
engulfing candle, we confirm the trade.
Then we should aim for a price target equal
to the size of the pattern.