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Bullish Kicker Candlestick Pattern

  • user-icon Admin
  • date-icon April 05, 2020

The Bullish Kicker is a strong Bullish reversal pattern that indicates a sudden shift in market sentiment from bearish to Bullish. It is one of the most powerful candlestick patterns and suggests a significant change in investor behavior.

Structure of the Bullish Kicker Pattern:
1. First Candle (Bearish)

• A red (bearish) candle, indicating a strong downtrend. This shows that sellers are in control.

2. Second Candle (Bullish with Gap Up)

• A green (Bullish) candle that opens at or above the previous candle’s high (gap up). There is no overlap between the two candles, and the second candle moves strongly higher, showing a complete shift in momentum.

Key Characteristics:

✅ A strong gap between the first and second candle (no wicks overlapping).

✅ The second candle must be a strong Bullish candle (preferably without upper wicks).

✅ Occurs after a downtrend or at a key support level.

✅ Indicates a major shift in market sentiment.

Psychology Behind the Pattern:

• The first bearish candle represents strong selpng pressure, where the market is dominated by bears.

• The second Bullish candle completely ignores the prior trend, signapng that buyers have taken full control. This shift often happens due to breaking news, earnings surprises, or major events that spark a sudden Bullish sentiment.

Trading Strategy:

📌 Entry: At the open of the next candle after confirmation.

📌 Stop-loss: Below the second candle’s low.

📌 Target: Next resistance level or a favorable risk-reward ratio.

Conclusion:

Since the Bullish Kicker is a high-confidence pattern, it often leads to explosive price moves. It’s an indicator of a strong shift in market sentiment and can be a powerful signal for entering a long position, especially when combined with other technical analysis tools or volume confirmation.