What is a kicker pattern? A kicker pattern is a two-bar candlestick reversal pattern that signals a sudden and decisive change in market sentiment. It typically appears after the release of significant information and shows a sharp price reversal between two consecutive candlesticks. Traders use it to identify which group—buyers or sellers—has taken control of the market. How it works
* The pattern consists of two candlesticks:
* Day 1 follows the prevailing trend (bullish in an uptrend, bearish in a downtrend).
* Day 2 opens at or beyond the previous day’s price (often creating a gap) and moves strongly in the opposite direction.
* The two candle bodies are usually opposite colors, visually highlighting the abrupt change in sentiment.
* A kicker implies a dramatic shift in investor attitude—often tied to new fundamental information—rather than a gradual continuation of the existing trend.
Bullish vs. bearish kickers
* Bullish kicker: Day 1 is bearish, followed by Day 2 opening higher (gap up) and moving strongly bullish. Signals a shift from selling pressure to buying pressure.
* Bearish kicker: Day 1 is bullish, followed by Day 2 opening lower (gap down) and moving strongly bearish. Signals a shift from buying pressure to selling pressure.
Example: bearish kicker
* Day 1: A bullish candlestick continues the uptrend.
* Day 2: A bearish candlestick opens at or below Day 1’s open (often with a gap down) and then declines further, reversing the prior day’s direction.
* A gap down on Day 2 generally strengthens the signal and increases the likelihood of continued price decline.
Reliability and trading considerations
* The kicker is one of the more powerful candlestick reversal signals but is relatively rare because it requires a rapid market reaction.
* It is most meaningful when it occurs in overbought or oversold conditions or after clear new information that justifies the sentiment shift.
* Traders often look for confirmation—such as increased volume, follow-through candles, or supporting technical indicators—before committing to a position.
* Because the pattern reflects a strong sentiment change, some traders enter immediately while others wait for a pullback; both approaches carry trade-offs between risk and missed opportunity.
Key takeaways
* The kicker pattern is a two-candle reversal signal that reflects a sudden shift in market control.
* It can be bullish or bearish depending on the direction of the reversal.
* The pattern is rare but powerful; confirmation and risk management are recommended before trading it.
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