Kicker Pattern: Understanding and Identifying Reversal Signals
It consists of a long bullish candle, a small indecisive candle, and a large bearish candle that closes well into the first candle’s body. The Stick Sandwich candlestick pattern is a three-candle formation where two bearish candles share the same closing price with a bullish candle between them. The Unique Three Rivers candlestick pattern is a less common bullish reversal signal composed of three candles. It starts with a long bearish candle, followed by a small bullish candle, and ends with another candle confirming the reversal. The Bullish Abandoned Baby candlestick pattern is a rare but highly reliable three-candle reversal formation. It begins with a long bearish candle, followed by a doji that gaps down, and ends with a bullish candle that gaps up.
This may be interpreted as confirmation of a possible opportunity to sell. These indicators can also be used to determine the stock’s volatility. A Bullish Kicker Candlestick Pattern appearing alongside high volatility is interpreted as a sign of a significant opportunity for the trend to continue. The Bearish Kicker Candlestick Chart pattern’s reliability is high when it is formed at the uptrend or formed in an overbought area. The pattern points to a strong change in investors’ attitudes toward a security. The change in direction usually occurs following the release of valuable information about a company, industry, or economy.
List of Top 41 Candlestick Patterns in 2025
This is firstly indicated by the down gap and then confirmed by the size of the next bearish candlestick. When it happens, it is a sign that the asset’s downtrend will continue. Candlestick patterns can be applied to forex, stocks, commodities, indices, and crypto markets. Regardless of the asset, each candlestick pattern functions the same way—reflecting market psychology and shifts in price direction. When found near the top of an uptrend, it serves as a warning that upward momentum is fading.
Risk Management Suggestions for the Bullish Kicker
- A sell signal occurs when the first candlestick is white and the second one is black.
- Traders often look for high trading volumes and a gap up between the first and second candles to confirm the pattern.
- The bullish kicker is considered a strong bullish candlestick pattern that precedes a bullish price run.
- The close confirms the shift, and entering at that point means you are following momentum, not trying to predict it.
Ignoring broader news or trend context is another slip that can distort what the pattern really signals. Misreading other gap-based patterns as a kicker also happens often. Hence, it’s not about spotting candles but it should be read with context. It generally shows the early stages of a reversal, giving traders a slight chance to react before momentum builds.
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It often signals the end of a downtrend and the start of a new upward move. A confirmation candle closing above the hammer’s high strengthens the signal. Below is a ranked list of the top 10 bullish candlestick patterns for 2025, including their reliability, signal type, ideal timeframe, confirmation requirements, and risk level.
Reversal Candlestick Patterns: Bullish and Bearish Reversal Candles
Gap patterns tend to persist in a trend, either up or down, and remain in that direction. Bullish kicker candlestick is a bullish trend reversal candlestick pattern consisting of two opposite-colored candlesticks with a gap between them. The bullish kicker is considered a strong bullish candlestick pattern that precedes a bullish price run. The pattern begins with a bearish candle, which tells us that the bears are currently in control. And this is something that we can take advantage of in our trading!
- Mastering bullish candlestick patterns allows traders to recognize early signs of a market rebound and seize profitable opportunities before a new uptrend begins.
- It highlights indecision and a potential change in trend direction.
- As you have probably guessed, the pattern is absolutely the same as the bullish kicker, but upside down.
- It represents a point where traders, in large part, turn the earlier direction and respond with renewed upward pressure.
- Traders can spot a kicker pattern by looking for two consecutive candles with a significant price gap between them.
The stronger the green candle and the cleaner the separation between the two, the more reliable the pattern becomes. In this article, we have looked at what the kicker candle is and how to use it in day trading. A common question is on the difference between the kicker candle and the exhaustion gap. Now, instead of placing a bearish trade at this level, you can wait for the 25-period and 10-period moving averages to crossover. You can use the kicker pattern with other patterns like double and triple top and bottom.
The third candle opens within the body of the second candle and closes below its midpoint, suggesting a high likelihood of a trend reversal. A Bullish Kicker is a trading strategy that involves adding a buy signal to a trend following system. Markets consist of large financial indexes, such as the S&P 500, NASDAQ, and the Dow Jones. Tools like RSI or a nearby moving average can help confirm the shift.
This candlestick pattern shows a brief consolidation before the next upward wave. The first two candles are large bearish ones, followed by two bullish candles that engulf them, “swallowing” the bearish move. This candlestick pattern indicates the market has absorbed all selling pressure and is ready to reverse upward. The Bullish Hikkake candlestick pattern forms when a false breakout occurs within an inside bar setup, followed by a move in bullish kicker candlestick pattern the opposite direction.
The kicker pattern differs from gap patterns, which are characterized by gaps between the bodies of two adjacent candlesticks. While both types of patterns can signal potential price movements, they have distinct implications. Gap patterns often indicate continuation of the current trend, while kicker patterns point to a shift in market sentiment. The kicker pattern is a significant two-bar candlestick formation with strong reversal potential, indicating a change in trend direction due to shifts in investor sentiment.
We’ve covered everything you need to know about the Bullish Kicker pattern and how to use it in live market conditions. Here are some quick limitations of this pattern that are worth keeping in mind. While the Bullish Kicker looks powerful when it forms cleanly, that structure alone doesn’t guarantee follow-through.
The chart shows a good example of the black and white marubozu candles. A white marubozu candle follows as the second line of the pattern, and it also has no shadows. The best average move 10 days after the breakout was a rise of 2.78% in a bull market.
What makes a Bullish Kicker pattern stronger?
The first candle shows heavy selling, and the second completely rejects that move. It only counts if the second opens above the first without overlap. It shows that buyers have stepped in with full control after aggressive selling. The Bullish Kicker forms when the price opens well above the prior session and never looks back. That kind of shift rarely happens unless sentiment has flipped completely.
So, how does the kicker pattern measure up to the more commonly found exhaustion gap? The key differential of this example from the previous bullish example is the small size of the gap candlestick. As you probably know, the rising wedge pattern has strong bearish sentiment. After a decrease, FB finishes the trading day with a bearish candle. Conversely, if you identify a bearish kicker pattern, you should look to get short. A larger gap, greater bar ranges relative to previous bars, and minimal wick length may suggest a stronger pattern.
Which bullish candlestick pattern is considered the most reliable?
The two primary kicker patterns that are prominent in the financial market today are referred to as “bullish kicker patterns” and “bearish kicker patterns.” A kicker pattern is a security’s price charting pattern that is identified by a drastic reversal in price over the span of its distinct two-bar candlestick formation. Kicker patterns are prominent in the technical analysis world because they act as predictors for changes in the direction of an asset’s price forecast.
And, if the price moves strongly after the kicker & ADX starts to rise, it confirms the uptrend. A kicker chart pattern is a rare but powerful pattern that signals the likelihood of a sharp reversal as it highlights a complete shift in market sentiment. In the science of chart reading, there are multiple patterns that traders use to try and predict stock movements. A powerful pattern that is used by many traders is the kicker candlestick pattern. After the bearish trend, a big bearish candlestick will form at the key level, showing the break of a level.
This all-in-one candlestick patterns PDF for offline trading includes every major bullish and bearish setup used by professional analysts to read market sentiment and time entries with confidence. Volume is a critical confirmation tool for bullish candlestick patterns. A pattern is considered stronger when accompanied by higher trading volume, as this indicates strong buyer interest. For instance, a Bullish Engulfing or Morning Star pattern with high volume enhances the likelihood of a successful reversal.