A Kicking Candle Pattern is a two-bar candlestick pattern that helps traders predict a turnaround in an asset’s price change direction. It is characterized by a sharp reversal in price over the length of two candlesticks. A reversal pattern, the kicking candle pattern, is one of the dominant bear or bull sentiment indicators.
In This Article
What is the Kicking Candle Pattern?
How To Analyze Chart Using The Kicking Candle Pattern
Category
Trend
Type
Leading
It is a candlestick pattern that predicts a change toward a security’s price trend. Traders use the kicking candle pattern to determine which group of market participants is in command of the direction.
Besides, it points to a potent change in the investor’s attitudes towards an asset that generally follows the release of valuable information about an industry, economy, or company. This pattern is one of the most reliable reversal patterns and usually indicates a dramatic change in an organization’s principles.
Kicker patterns are either bullish or bearish. A bearish-kicking candle pattern occurs during an uptrend and signals a reversal for a new downtrend. While the first-day candlestick is a white Marubozu candlestick, the second day’s is a black Marubozu.
At this point, there is a downward gap between them which continues, and the prices close at the trading session’s low. While the length of the candles defines the reversal’s extent, the gap points toward how remarkable a reversal is. A Larger gap means a reversal is more astounding. The occurrence of the second candle signals a prime event, causing the price to fall dramatically.
A bullish kicking candle pattern appears during a downtrend and signals an upcoming bullish reversal of the current bearish trend. Like its counterpart, it consists of two candlesticks. The first day’s candlestick is a black Marubozu, while the second day’s candlestick is a white Marubozu.
There is an upward gap between them. The formation of the first candlestick indicates a current downtrend in the market. When a chief event occurs, prices move up, causing the second candle to gap up.