Bearish Kicking Candlestick Pattern
The kicking Pattern can be bearish or bullish. Bearish candlestick patterns typically form at the peak of a price chart or at levels of supply or resistance. A bearish kicking is a price trend reversal candlestick pattern that appears in the space between two Marubozu candles of the opposite hue. This pattern is used to foretell the start of a bearish market trend. It is primarily made using stock or indices price charts. It occasionally also functions as a candle for a trend continuation.
Bearish Kicking Pattern Formation
First Candle Appearance
- Its appearance is white Marubozu.
- The appearance of a lengthy line
Second Candle Appearance
- It is Morubozu in black
- Price gaps to the downside.
- It appears to be a long line as well.
White morubozu is the first candle in this pattern, and black morubozu is the second candle. A price gap results from the second line’s opening appearing lower than the first. Depending on the trend in which the pattern develops, it may continue or reverse. This pattern is rarely discovered.
Examples of Bearish Kicking Pattern
On a daily timeframe, the red-circled chart displays a bearish candlestick pattern. The White Marubozu pattern is on the first candle. There is no shadow on this white candle. The following day, the price difference closes to create a black marubozu. There is no shadow on this black candle.
In this illustration, the price increases for two weeks before falling as a result of a bearish kicking pattern. When the price settles below the kicking candlestick pattern’s bottom, a breakout occurs. A short-term uptrend is bearishly reversed when the price moves into a bearish candle and then breaks it.
Bearish Candlestick Pattern Recognition
The recommendations below should be followed in order to spot bearish trend patterns on the price chart:
- The first candle in the pattern appears on the chart as a bullish Maruboze candle.
- The market will open after the gap closes. The starting price of the second candlestick is below the bullish Maruboze closing price.
- This pattern’s second candle is a significant bearish Maruboze candle with strong selling momentum.
Although the aforementioned factors are crucial for spotting bearish candlestick patterns, traders must hone them to improve their chances of success. Investors that do not alter the pattern lose money.
Psychology at the Back of Kicking Candle Pattern
Watch the candle pattern to understand the psychology of traders who trade at the ends of the chart. Numerous methods are used by large traders to deceive retail traders. Institutional traders typically triumph most of the time. Fighting them is difficult. To improve your chances, it is preferable to trade with bigger institutions. Because a lot of small-scale traders lose out on the market. By reading prices, we have access to established, sizable entities. For instance, a bullish Marubozu is an ideal sign that a bullish trend is holding for bearish candlesticks because the large white body represents the market’s buying momentum.
A bearish candlestick pattern denotes a significant shift in the mood of the market. Strong bullish candles on the first day of the pattern show that a bullish trend is taking control. However, the decline entirely reverses the following day, with the price rising more than it did the day before. Any long positions that were taken on a bullish candlestick on day one are now in the red, and if that bull decides to take a loss, further selling will take place, driving the price lower.
Using Bearish Kicking Candlesticks to Trade
This is a straightforward trading method that combines bearish candlestick patterns with exponential moving averages. The kicker pattern predicts a market reversal, and the EMA will only help you trade these reversals in the trend’s direction.
How to Trade a Bearish Kicking Candlestick Pattern?
The price needs to be lower than the moving average as the first need to verify. Start a sell trade and set a stop loss at the top of the candle pattern when the price is approaching the moving average, and a falling candle is formed. When the risk/reward ratio is 1:2, hold trades. The Fibonacci tool is another option for this.
Conclusion
Bearish Candlestick patterns typically form at the peak of a price chart or at levels of supply or resistance. A bearish kicking is a price trend reversal candlestick pattern that appears in the space between two marubozu candles of opposite hues. The first candle of this pattern is white and looks like a lengthy line. The second candle is black in color and also looks like a long line. This article also discusses the methods to identify the bearish kicking pattern on the chart and what’s the psychology at the back of it. The article also explains how a bearish kicking pattern is used for trading.
