Kicker Pattern
A candlestick pattern that predicts a change in an asset according to the price trend is a kicker pattern. The main feature of this pattern is that it shows a strong reversal in the span of two candles. Kicker patterns are used by traders to find out which group of market players controls the direction. Trends that show a significant change in investor behavior toward security usually occur after important news is released about a company, industry, or economy. The kicker pattern is either bearish or bullish. Here, I will describe in detail the Bullish Kicker Pattern.
In the stock market, there is a fierce battle between sellers and buyers. The constant battle between these two creates candlestick patterns. The kicker pattern is a very reliable reversal pattern. It indicates changes in the base of the company. Kicker patterns can be either a downtrend or an uptrend. Bullish kickers start with a bearish candle, and then there is a bullish gap upwards. Whereas bearish kickers start with a bullish candle, and then a bearish gap appears.
Bullish Kicker Candlestick Pattern
The candlestick pattern created after a large downtrend is known as the Bullish Kicker Candlestick Pattern. It can also be created after a major uptrend. The bullish kicker pattern contains a large bullish candlestick with a gap up.
The bullish kicker candlestick pattern is a bullish reversal candlestick pattern. It consists of two candles of different colors and opposites with a large gap between them. With an uptrend, the price will turn into a downtrend.
Identifying Bullish Kicker Candlestick Pattern
Here are the guidelines by which we can identify a bullish kicker candlestick pattern:
- This pattern starts with a bearish candle that can be either black or red.
- The second candle rises and opens above the previous day’s close. It continued to go straight and ended with a bullish candle.
- The wick of the second candle should not fill the gap but stay as it is.
This candlestick pattern has a high probability and also a higher success rate. We can increase the success rate by adding technical confluences.
Meaning of Bullish Kicker
The bearish candle that started this pattern informs sellers that they are in control. They ordered the market to go down, and it looks like the bulls are gone. But the game changes when the second candle kicks in and buyers take control. Now that the market is above the previous open bar, this is a sign of great strength. The second candle continues to rise and verifies the state where the gap from the previous open shows us that the bears have lost control and the bulls are now in control. The bullish kicker is quite spectacular. This indicates that market forces have completely changed overnight. This is something to keep in mind in trading to gain an edge.
Examples of Bullish kicker Candlestick Pattern
Following are the examples of bullish kicker patterns:
Methods to Increase the Accuracy of a Bullish Kicker Pattern
A bullish kicker alone may not be enough to take a position. We could certainly add a few conditions to improve accuracy. Here are the points you can use to improve the accuracy of the bullish kicker candlestick pattern:
1-Assess the strength of the pattern
2– Add volume conditions
3-Watch the volatility
Best Operating Conditions for Bullish Kicker Candlestick Pattern
In trading, we should not depend on candlestick patterns. The market is full of bad patterns, and trading psychology is also a big obstacle to winning. Thus, the addition of technical confluences is essential. These are two important confluence points.
1- Support or request zone:
2- Oversold zone
Support or Demand Area
Demand zones are important price levels that push the price up. These levels always cause the price to bounce. The bullish kick is already an uptrend pattern that is essentially a reversal. Therefore, if these two tools are combined, the probability of an uptrend reversal increases.
Oversold Zone
In the oversold zone, a falling price or an RSI value below 30 means that the price will rise again when the price moves in a wave pattern on the chart. These confluence points will help to better define the trade.
Approaches Using Bullish Kicker Candlestick Pattern (Performance)
Most of the time, a bullish kicker alone is not enough to trade without confirmation. If we want to trade successfully, we need to develop different strategies for the specific market and choose a specific timeframe in which the pattern works. Some of these approaches are:
1- Bullish kicker with RSI
2- Bullish kicker and lower ADX value
3- Bullish kicker candlestick pattern and moving averages.
Information, The Kicker Candlestick Pattern, Informs the Trader
The trend before kicker formation is bearish. This indicates that sellers are in control, and the asset value decreases over time. After the downtrend, a large bearish candle will be created at the key level, indicating a break of this level. During this price action phase, many traders will open sell orders.
Due to a major event happening, after a bearish candle, a large bullish candle will be created at the top with a gap. This forces retail traders to stop loss. Now the uptrend will start to push the sellers out. Now the buyers are in control, and they continue to increase the value of the price.
Conclusion
The kicker pattern is a candlestick pattern that predicts a positive change in the price trend. A bullish candlestick pattern is created after a large downtrend. This is also created after a major uptrend. It contains a large bullish candle with a gap up. Different signs to identify a bullish kicker pattern are also discussed in this article. We have also explained what the bullish indicator means and the methods to increase the accuracy of the bullish indicator. This article also covers the trading conditions for the bullish kicker pattern and what is the best approach to using the bullish candlestick pattern.
