Join 1,400+ traders and investors discovering the secrets of legendary market wizards in a free weekly email. Drum roll….the Kicker pattern is definitely the better trading alternative relative to the exhaustion gap. Now that we’ve covered the bullish pattern, let’s dig into the bearish version of the pattern. Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Rick Saddler, Doug Campbell, John Carignan, or this website should be considered as financial or trading advice. Opposite to a bull market, a bear market is when the market declines.
How to Trade Kicker Patterns
The general consensus between traders is that the bullish kicker pattern is one of the most powerful and influential tools in technical analysis. The bullish kicker pattern, at its core, narrates a tale of astonishment and metamorphosis. The bearish kicking candlestick pattern is the exact opposite of the bullish kicking. Each pattern requires two marubozu candlesticks with a gap between them. The bearish kicking starts with a white candle on the first day, followed by a black candle on the second.
As you can see, the lowest black candle on the chart is followed by a gap up and a white candle, creating a Bullish Kicker. Although the second candle has a substantial lower wick, it doesn’t enter the first candle’s body. This is crucial, because if it did, the Bullish Kicker would not exist because the wick would close the gap between the candles.
In other words, the first candlestick should be in the direction of the trend followed by a gap. The second candlestick forms in the new direction above or below the gap. Whereas, as we just discussed, the bullish requires a bearish marubozu followed by a white marubozu gapping up. And since the most profitable setup is the same one recommended by traditional technical analysis, let’s cover this bullish setup now.
- Bearish kickers start with a bullish candle and then show a bearish gap down.
- The key point to call out is that the candles never overlap.
- But what if I told you there’s a secret signal, a whispered message hidden in the price charts, that could tip you off to a bullish U-turn before the dust even settles?
A bullish Kicking (also known as Kicker) pattern signals a reversal for a new uptrend. The first day candlestick is a bearish marubozu candlestick with next to no upper or lower shadow and where the price opens at the day’s high and closes at the day’s low. The second day is a bullish marubozu pattern, with next to no upper or lower shadow and where the price opens at the day’s low and closes at the day’s high.
Identifying the Bullish Kicking Pattern:
Note that the gap formed by the kicker was filled before continuing upwards. Explosive and powerful, the Bullish Kicker should not be overlooked. Most traders place it amongst the strongest and most influential candlestick patterns lexatrade review in existence, so when you spot it, be prepared for action!
Trading Kicker Patterns
Shifting gears back to Facebook – the stock developed a wedge pattern after the huge gap up candle. You as a trader need to be able to discern when a stock is having a normal retracement. Keeping a close eye on volume is a great way to locate healthy retracements, versus a trade you need to close immediately.
Second, the second candle (which is white or bullish) must open above the close of the first candle, forming a gap. Third, the movement of the price during the formation alvexo forex broker of the second candlestick should never drop into the gap formed between the first and second candle. As you might have guessed, this means that there is rarely a bottom wick on the second candlestick. Navigating challenging river rapids demands strategic precision, as does trading with the bullish kicker pattern. But what if I told you there’s a secret signal, a whispered message hidden in the price charts, that could tip you off to a bullish U-turn before the dust even settles?
We put all of the tools available to traders to the test and give you first-hand experience in stock trading you won’t find elsewhere. What we really care about is helping you, and seeing you succeed as a trader. We want the everyday person to get the kind of training in the stock market we would have wanted when we started out. The Bullish Bears trade alerts include both day trade and swing trade alert signals. These are stocks that we post daily in our Discord for our community members. It’s important to see what other patterns they’re apart of.
The chart shows a good example of the black and white marubozu candles. A white marubozu candle follows as the second line of the pattern, and it also has no shadows. Sometimes it is difficult to translate classroom lessons to the real world. To get a better handle on the formation of the Bullish Kicker and to see how it might pop up during the course of a trading session, review the trio of examples below. The bearish kicker pattern emphasizes the abruptness of the change in investor attitude.
Conversely, if you identify a bearish kicker pattern, you should look to get short. The kicker formation is a reversal pattern that starts with a candle in the direction of the primary trend, followed by a gap contrary to the trend. The Bullish Kicker candlestick pattern doesn’t need to form after a significant downtrend, but it often does. When this happens, the sudden change in attitude is likely due to a game-changing news event. The one downside to the bullish kicker pattern is that they are extremely rare and only occur in very distinct situations and events. The stock gaps are in the opposite direction of the trend, which is why it’s different from a gap-up pattern.
Feel free to ask questions of other members of our trading community. We realize that everyone was once a new trader and needs help along the way on their trading journey and that’s what we’re here for. It’s important to remember that nothing is 100% perfect in the stock market. Even the clearest patterns and the best set ups can break down. If you study and practice before making live trades, you’ll set yourself up to be successful. The gaps are filled, and a new trend could begin, or the current trend could continue.
