Bearish Kicker candlestick pattern: A strategy for Gap down trading

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Bearish Kicker Candlestick chart pattern is yet another 2 candlesticks bearish trend reversal pattern very important to trade with a gap down in price values.

You can relate this pattern with Bullish Kicker Candlestick Pattern where the fundamental concept remains the same. The difference exists in the interpretation.

This pattern has become important and widely used due to its strong bearish reversal signal, its feature to interpret market behavior when technical indicators fail to do so.

This pattern gives the indications of mood swing that happens in the market where suddenly market changes its direction. This is the reason that suddenly technical indicators may not help and candlestick alone can save you by telling behind the scene actions.

Here we will find out its characteristics and behavior so that you can use them in a proper fashion.

Physical appearance of Bearish Kicker Candlestick Pattern

It is 2 candlestick pattern where the first candlestick is bullish and the second one is bearish.

  1. The first candle is bullish which is a continuation of previous bullish sessions
  2. The second candles are bearish that confirms the pattern with an open price below the close price of the first candlestick.
  3. The second candle should have no or very small upside shadow
bearish kicker example_1_1
Source: Economic Times

Market interpretations

The interpretation lies in their formation. The first candlestick formed with a continuation of uptrend makes traders believe that the market will head in the same direction. Buyers are active and dominant in the market and this may last for further sessions

The sudden trend reversal takes place when a bearish candle with a gap down formation takes place. This condition is not directly interpreted by technical indicators. Here candlestick chart will help you to analyze the market situation.

With second candlestick you can assure that there is no confusion or indecision in the market rather there is the straight signal that trend is reversed and there is no chance for the market to attain the price again.

Condition of use

This is best interpreted when found after an uptrend. The trend need not be strong rather it may work after small bullish reversals.

The key point here is gap down that need to be followed by a bearish candlestick


Learn about other bearish trend reversal signals

    1. 3 inside down candlestick pattern
    2. 3 black crows candlestick pattern
    3. Evening Star candlestick pattern




How to trade with Bearish Kicker Candlestick Pattern

The trading techniques from the gap down become completely dependent on candlestick interpretations. Here are few examples that may help you to find out how bearish kicker can help you in trading.

bearish kicker example__2
Source: Economic Times

 

bearish kicker example__1
Source: Economic Times

Key elements to remember

  1. 2 candlestick pattern
  2. The first candle is bullish and third candlestick is bearish with a gap down formation
  3. Works well when located after an uptrend




Learn how to increase profit using technical indicators

Bottom Line

Bearish Kicker Candlestick chart patterns is a must learned pattern for all traders who follow candlestick charts. It holds its importance similar to bearish kicker candlestick pattern as they both work in the gap up and gap down. You Can Rely on candlestick here when technical indicators fail to give these type of sudden reversal signals.

Post Author: Sushant Putatunda

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