We close the long trade with Facebook the moment the price action closes a candle below the support line of the rising wedge pattern. As you have probably guessed, the pattern is absolutely the same as the bullish kicker, but upside down. This time the two candles bullish kicker candlestick pattern of the gap are bullish and bearish respectively. 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.

This article will look at the kicker pattern, which is another reversal candlestick pattern you can use when both day trading or investing. The exhaustion gap consists of a gap in the direction of the trend, formed during low trading volumes. The trend might continue in the direction of the gap for a brief period before the volume picks up and the price action reverses.

What is bullish kicking pattern?

Represents a brief consolidation before the uptrend continues, offering favorable risk-reward entries. Momentum analysis is where candlestick reading becomes truly powerful. By comparing a candle to previous candles, we can gauge how sentiment and momentum are shifting in real-time. The wicks of a candle provide critical insights about rejected price levels. In my trading experience, wick analysis often reveals where smart money (institutional traders) may be positioning themselves. The setup is versatile but is usually applied to short-term trading strategies.

Bullish Kicker Candlestick Pattern

A price gap where a candle opens significantly lower than the previous candle’s low, with no price overlap. Indicates intense selling pressure causing price to “jump” lower without trading at intermediate levels. The Bear Flag is the bearish equivalent, signaling potential continuation of downtrends. This pattern beautifully captures the essence of how trends unfold – advances followed by consolidations followed by further advances.

Technical Analysis

It would be best to have the gap; otherwise, the pattern is null and void. A kicker pattern informs you of a big change in traders’ attitudes regarding a stock. The release of news or information is usually the cause of a change in traders’ attitudes.

• Bullish kicker indicates that there has been a shift in market sentiment and that buyers have taken control of the market.
• Candlestick patterns work across all financial markets and timeframes because they reflect universal market psychology – the interaction between buyers and sellers.
• A longer body indicates buyers were able to push prices significantly higher.
• Unlike the rounding bottom, which is characterized by a gradual change in psychology, the V top or bottom evokes a situation of panic or euphoria.

You can use the kicker pattern with other patterns like double and triple top and bottom. The down gap can be caused by a company publishing weak financial results, a denial of an FDA approval, and other negative things. When it forms, the pattern is usually a sign that a financial asset will start a new bearish pattern. Now that you have a basic understanding of both the kicker and exhaustion gap patterns, let’s have a head-to-head competition between the two patterns. Now that we’ve covered the bullish pattern, let’s dig into the bearish version of the pattern.

To minimize potential losses, set a stop loss order below the low of the previous red candlestick. The kicker pattern is considered one of the most reliable reversal patterns and usually indicates a dramatic change in a company’s fundamentals. The kicker pattern is a reversal pattern, and it differs from a gap pattern, which tends to show a gap up or down and stay in that trend.

As in all patterns based on Japanese figures, the prediction of the stock market prices’ evolution will have to be validated by the following session. Validation of the “bullish kicking” pattern is necessary for the trend reversal to materialize. For a better interpretation, great importance should be given to the size of the bodies and shadows of the candles forming the candlestick pattern. For instance, if the first day is bearish and has a larger marubozu than the next day, the pattern is considered a bearish kicking by length. The bullish kicking by length and the bullish kicking are the same pattern – they’re just different trading strategies. All information on The Forex Geek website is for educational purposes only and is not intended to provide financial advice.

The first-day candlestick is a red marubozu followed by a gap into a bullish marubozu. There is no trend requirement for the kicking candlestick patterns, so we’ve fulfilled all the requirements for a valid pattern. An exhaustion gap is formed, mostly on the daily or weekly chart, when an asset is moving in an uptrend or downtrend then forms a gap in the opposite direction.

Forex Trading with FXOpen

Understanding the dynamics of a bullish market and how to identify potential entry and exit points can be crucial for success in forex trading. A bullish kicker is a candlestick pattern that’s often formed after a significant downtrend, but could also form after an uptrend. In short, a bullish kicker consists of a large bullish candlestick, that’s preceded by a gap to the upside and a bearish candle. The psychology behind this pattern lies in the abrupt change in sentiment.

The Bullish Momentum Candle

Shows momentum shifting from bullish to bearish at the end of an uptrend. The bullish kicker candlestick pattern develops during a bearish price move. I know that is counterintuitive, but remember the stock gaps in the opposite direction of the primary trend – hence bullish.

• It is recommended to use other technical indicators such as MACD, RSI, MA, etc to get them accurate.
• The bullish kicker can happen during a price range after a bearish candle or near the end of a downtrend in price.
• We don’t care what your motivation is to get training in the stock market.
• To minimize potential losses, set a stop loss order below the low of the previous red candlestick.

Relative Strength Index (RSI) is lower than the oversold level of 30 is interpreted as confirmation of a possible buying opportunity. RSI is at or above the level of 70  indicates that the market is considered to be overbought. This may be interpreted as confirmation of a possible opportunity to sell. I’ve always loved teaching—helping people have their “aha moments” is an amazing feeling.

They tend to be more reliable on higher timeframes (daily and weekly charts) compared to very short timeframes (1-minute or 5-minute charts) where market noise can create false signals. Additionally, patterns often work better in liquid markets where price discovery is more efficient. A single-candle bearish reversal pattern with a small body at the bottom and a long upper wick at least twice the body’s size. Shows rejection of higher prices during an uptrend, warning of a potential trend reversal.

However, in this scenario, the second candlestick opens with a distinct gap down, marking a sudden and significant change from the preceding bullish sentiment to a bearish reversal. Now that we know how to identify this bullish candlestick reversal pattern let’s learn how to kick our profits into the stratosphere. In the case of a bearish kicker, it means that an uptrend is losing momentum. This is firstly indicated by the down gap and then confirmed by the size of the next bearish candlestick. When it happens, it is a sign that the asset’s downtrend will continue.

The first candle in the signal continues with the current trend, moving downward, but then a major event causes the second candle to gap up. Thus, the Bullish Kicker candlestick pattern portrays a strong change in investor opinion. Not only is there a bullish candle following a bearish candle, but the strength of the switch resulted in a gap between the two candles. Discover how the bullish kicker pattern in candlestick charts signals potential market reversals and influences trading strategies. Traders should always use multiple technical and fundamental indicators in conjunction with risk management strategies to maximize their chances of success.

Mastering candlestick patterns is a journey that can significantly enhance your trading results, but it requires both knowledge and practical experience. Throughout this guide, we’ve covered the essential patterns that have consistently proven their value across different markets and timeframes. A single-candle bullish reversal pattern with a small body at the bottom and a long upper wick, appearing during downtrends.