Bearish Kicker |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bearish
Prior Trend of Candlesticks: Bullish
Reliability of Candlesticks : 1st Grade
Confirmation of Candlesticks: Highly Reliable
Candlestick Patterns Key Reference |
DESCRIPTION
Bearish Kicker pattern is followed by a long bullish candlestick at the top of the uptrend followed by a gap down on the next candlestick which form a Bearish Marubozu.
Bearish Kicker is an top reversal pattern which is highly reliable for reversing a uptrend to an downtrend.
PATTERN RECOGNITION
1. Bearish Kicker pattern can be identified by a uptrend followed by a top reversal.
2. Refering to above diagram, firstly we will see a bullish candlestick at the top of the uptrend followed by a gap down on the next candlestick.
3. Finally we will see a Bearish Marubozu candlestick with opening price near the opening price of previous candlestick indicating an downtrend.
EXPLAINATION
When the Bearish Kicker pattern is formed at the top of a uptrend with a gap into immediate reversal is extremely powerful indication of a change in sentiment showing a strong signal of the downtrend market.
The first bullish candlestick indicated the bull is currently in control.
The next candlestick immediately open at near the opening price of the previous candlestick and form a Bearish Marubozu candlestick showing an downtrend.
The price does not move within the previous candlestick range, instead it should close with another gap.
The 1st grade reversal patterns are the most reliable group of reversal patterns that seldom require any confirmation.
POINT TO NOTE
For Bearish Kicker pattern, we should note that both of the candlesticks should not have shadows or or they have very short shadow, both candlesticks should be Marubozu with a gap down by the following candlestick.
The Bearish Kicker pattern is highly reliable. The longer the body, the stronger the reversal of trend will happen by the conviction of traders.
CANDLESTICK PATTERNS KEY REFERENCE
Irrespective of Color (Can be bullish or bearish) |
Uptrend |
Consolidation |
Downtrend |
ANTICIPATED DIRECTION OF TREND
Lighter Arrow = Lower Probability
Solid Arrow = Higher Probability
More Likely to go sideway, Less likely to rally
|
More likely to rally, Less likely to go sideways
|
More likely to go sideway, Less likely to fall
|
More likely to fall, Less likely to go sideways |
