The Kicker Candlestick Pattern Indicator is a special reversal pattern shown by a candle in the direction of the prevailing trend, followed by a gap in the opposite direction. Forex is one of the emerging interests of the market and many people are inclined towards it.
There are two types of Kicker Candlestick Patterns – Bullish and Bearish.
Bullish Kicker Candlestick Pattern: This pattern emerges during a bearish price move. Despite the counterintuitive nature, the bullish kicker occurs when the stock gaps in the opposite direction of the prevailing downtrend.
The two candles involved,What is a Bearish Kicker Pattern? one bearish Pivot Point Indicators and the other bullish, don’t overlap. Traders observing a bullish kicker should consider entering a long position. This pattern is extremely useful in the forex market.
Bearish Kicker Candlestick Pattern: Conversely, the bearish kicker pattern unfolds amid bullish price moves. The mirrored version of the bullish kicker, it signals a potential trend reversal. Similar to its counterpart, the two candles involved Klinger Volume one bullish and the other bearish, do not overlap. Traders recognizing a bearish kicker may consider entering a short position.
Kicker Pattern Candlestick Charting:
Bullish Kicker Charting Example:
- Observing a bullish kicker on a 5-minute chart.
- After a downtrend, concludes the day with a bearish candle.
- The next day begins with a bullish gap and a substantial bullish candle, confirming the bullish kicker.
- Traders open a long position after the gap-up candle Candle Pattern Indicator, placing a stop-loss order below the last candle of the preceding day.
Bearish Kicker Charting Example:
- On a 1-minute chart of Pandora Media from August 30, 2016, a bearish kicker pattern appears after an uptrend.
- The last candle of the uptrend is bullish, followed by a bearish gap and candle, confirming the bearish kicker.
- Traders sell Pandora stock and place a stop loss above Reversal Candlestick the pattern top to manage risk.
Kicker Pattern vs. Exhaustion Gap:
- More frequently observed in the market compared to the kicker pattern.
- Often leads to more substantial price moves.
- Utilizes trading volume to confirm pattern validity.
- Trades may take more time to develop Bearish Kicker Candlestick Pattern.
- Lower success rate than the kicker pattern, Fractals Adjustable Period with potential for continued trend direction before reversal.
- Stop loss is often positioned far from the entry price, increasing trade risk.
- Higher success rate.
- Clear structure reduces identification ambiguity.
- Tighter stop loss, minimizing risk.
- Usually completes in a shorter timeframe.
- Relatively rare, making identification challenging.
- Post-pattern price moves may be smaller compared to exhaustion gaps.
Bearish Kicker Candlestick Pattern PDF Download
Traders need to be vigilant in identifying these patterns, as they often indicate significant changes in market sentiment triggered by major events. Forex trading has the potential to make you a millionaire in a short period of time.