Kicker Pattern: What It Is, Indicates, and Examples

Most professional traders do not rapidly overreact in one direction or another. However, if and when the kicker pattern presents itself, money managers are quick to take notice. Alternatively, you can use reversal chart patterns like the head & shoulders, double top and double bottom, rising and falling wedge, and a rounded bottom.

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The large bullish candle that follows the bearish candle is a clear sign that buyers are taking control of the market, which can be an excellent opportunity to enter a long position. This pattern can also be used to identify potential support levels, as the sizable bullish candle may indicate that the price has found support and is likely to continue rising. A bearish kicker pattern forms in the exact opposite of the bullish kicker one.

Our services include coaching with experienced swing traders, training clinics, and daily trading ideas. 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.

In both, these kicker patterns are characterized by a gap that happens between candlesticks. The bearish kicker is an arrangement in financial modeling that are recognised by a sharp decline in price over the course of its distinctive two-bar candlestick formation. Traders use it to ascertain which market segment is in charge of the direction. Secondly, the long bullish candlestick preceding the bearish candlestick indicates that there was initially a bullish sentiment in the market. TradingView has an indicator known as Kicker Scanner, which scans a chart and identifies bullish and bearish scanners. The chart below shows the kicker candlestick patterns it has identified in the SPY ETF.

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A kicker pattern is a two-bar candlestick pattern that predicts a change in the direction of an asset’s price trend. This pattern is characterized by a bitmex review sharp reversal in price over the span of two candlesticks. Traders use it to determine which group of market participants is in control of the direction.

1. You can use the kicker pattern with other patterns like double and triple top and bottom.
2. A bearish kicker indicates a bearish market and bullish kicker indicates bullish markets.
3. The gap and big bearish candlestick that makes up a bearish kicker could easily inflate the ADX reading, and give us too few trades (since we require the ADX to be low).
4. The constant tug of war among these players is what forms candlesticks patterns.
5. In this third example, you can spot both a Bearish Kicker and a Bullish Kicker.

You may also see the opposite formation (a black candle followed by a white candle that gaps up and never drops into the gap), which is known as a Bullish Kicker candlestick pattern. Traders use bearish patterns in combination with other technical analysis tools to make informed trading decisions. But is important to remember to always confirm the patterns with other indicators before making any trading decisions. The bearish kicker candlestick pattern is not particularly accurate with only a 47% accuracy.

Kicker pattern strategies

Always look at these aspects before you open a trade using the kicker pattern. Bearish Kickers often appear after a startling news event that causes an abrupt change in investor sentiment before or after market hours. It is most relevant when it forms in an oversold or overbought area, but regardless of the area or trend, the gap between the candlesticks illustrates a strong and meaningful change. These early stock traders were famous for their rough and aggressive trading strategies, which were compared to the manner in which a bear would attack its prey. The terms “bearish” and “bullish” are frequently used in the business of finance to describe the state of the market and the sentiment of investors today. The bearish kicker is one of the most popular candlesticks and is believed to precede a bearish price run.

This gap signifies a sharp disconnect between the closing price of the first candle and the opening price of the next candle. The visible empty space on the chart emphasizes the sudden change in sentiment between the two candles. It reflects the shift from a biased market to a two-sided price discovery. We have a basic stock trading course, swing trading course, 2 day trading courses, 2 options courses, 2 candlesticks courses, and broker courses to help you get started. It’s important to treat day trading stocks, options, futures, and swing trading like you would with getting a professional degree, a new trade, or starting any new career.

A bearish kicker can be formed in an uptrend or downtrend, and is made up of a bearish candle that’s preceded by a gap to the downside and bullish candle. As with all candlestick patterns, the kicker pattern is not always reliable and there are times it will give you a false signal. In line with this, traders and investors use several approaches to improve the reliability of the pattern. Similarly, the bearish kicker happens in an uptrend, sending a signal that the asset will start a new bearish trend.

You can use the kicker pattern with other patterns like double and triple top and bottom. 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. 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. Trading contains substantial risk and is not for every investor.

It’s essential to be cautious when you use the bearish kicker pattern, as it is not always reliable and may be followed by a continuation of the bullish trend. It is also essential to consider the volume and liquidity of the security, as well as any relevant news or economic events that may affect the price. The bearish kicker candlestick pattern differs to other trading indicators because it is outrightly based solely on price action. And like any other price action, it helps you determine or predict the potential move or flow of momentum, volume, and bias in a financial instrument. One advantage of the bearish kicker pattern is that it can strongly indicate a trend reversal.

We are able to draw a straight trend line through the tops of the patterns. Gordon Scott has been an active investor and technical analyst or 20+ years. Get our latest insights and announcements delivered straight to your inbox with The Real Trader newsletter. You’ll also hear from our trading experts and your favorite TraderTV.Live personalities.

And to continue on that theme, here Luno exchange review we’re using the ADX indicator to excludes bearish kickers that form in too volatile markets. It tells a story about a rapid shift in market sentiment that happened quicker than most people had anticipated. As such, it catches many by surprise, and could definitely lead to some panic selling. For example, they combine it with other chart patterns like head and shoulders and double-top and bottoms. In addition, they confirm the validity of the pattern by using technical indicators like moving averages and Bollinger Bands. On August 12th, a buy order was executed at the opening price of $107.55 to capitalize on the bullish implications of this pattern.