- Sentiment: Bearish
- No. of candles: 2
- Direction: Reversal
What Is The Bearish Kicker Japanese Candlestick Pattern?
The Bearish Kicker pattern is a bearish reversal pattern that typically forms after an uptrend.
The Japanese candlestick pattern consists of two candles.
The first candle is a long white (bullish) candle, while the second candle is a long black (bearish) candle that gaps down from the high of the first candle.
What Is The Psychology Behind The Bearish Kicker Pattern?
The Bearish Kicker pattern reflects a sudden shift in market sentiment from bullish to bearish.
During the period of the first white candle, buyers are in control and push the price higher.
However, during the period of the second black candle, sellers step in and completely overwhelm the buyers, pushing the price down and creating a gap between the first and second candles.
This pattern indicates a strong reversal of momentum and a potential trend change, as sellers take control of the market.
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How To Trade The Bearish Kicker Reversal Pattern?
To trade the Bearish Kicker pattern, wait for confirmation by a subsequent bearish candle or another technical indicator.
The sell trigger occurs when the price moves and closes below the low of the second black candle, confirming the pattern.
Place a stop loss order above the high of the first white candle to protect against potential false breakouts or reversals.
As the price moves in your favor, consider using trailing stops or other risk management techniques to lock in profits and minimize potential losses.
Additional Tips
While the Bearish Kicker pattern can be a reliable bearish reversal signal, it is essential to use it in conjunction with other technical indicators and chart patterns to confirm the trend change.
Additionally, be aware of the overall market context and consider factors such as support and resistance levels, as well as the strength of the prevailing trend.
Keep in mind that no single pattern can guarantee a trend reversal, and proper risk management is always necessary.
Continue to learn about Japanese candlesticks through books, such as Steve Nison’s “Japanese Candlestick Charting Techniques” and “Beyond Candlesticks.”
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