Bullish Kicker Pattern

By: PipsAngels

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Bullish Kicker Japanese Candlestick Pattern

While we learn Japanese Candlesticks, Kicker Patterns inevitably come up. Kicker signals, like all the candlestick patterns, are reliable indicators in Forex, Stocks, Futures, Options; pretty much any market forum. The Kicker signal is one of the most powerful signals. It works equally well in either direction. Its importance is magnified when occurring in the overbought or oversold area. This formation is indicative of a dramatic change in investor sentiment. Often this occurs due to some surprise news that hits the market, causing the massive change in sentiment. The candlesticks visually depict the magnitude of the change.

The Bullish Kicker Signal is a two candle pattern, and is the opposite of the Bearish Kicker Signal.

The first candle opens and moves in the direction of the current down trend. Usually with little or no upper or lower wick.

The second candle opens at the same open of the first candle, or is gapped up, and moves in the opposite direction.

Rules to identify the Bullish Kicker pattern:

Potential Signal Strengtheners:

General Analysis and Investor Sentiment:

The Kicker signal demonstrates a dramatic change in investor sentiment. Something has occurred to suddenly change the direction of the price. Usually a surprise news item is the cause of this type of move since it changes investor psychology toward the news item. The signal indicates the new direction will likely persist with strength for a while because of the new investor sentiment created.

However, if you use this signal to go long and then the next day prices gap back the other way, close out the trade immediately.

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Thursday, 24 April 2014, 02:57pm ET | Thursday, 24 April 2014, 07:57pm GMT


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