Bullish kicker candlestick pattern: A strategy for Gap up trading

Bullish kick

Bullish candlestick pattern is something every candlestick chart readers would love to find this in the market.

If you are new to this then you will be amazed to know that Gap ups and Gap downs are something that even technical indicator fails to give any interpretation of the market.

Here candlestick plays a role of savior. Even in such cases candlestick can suggest, behind the scene, what is actually happening in the market or is going to happen

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So if you find any gap up you can use this bullish kick candlestick chart patterns which are commonly known for its strong bullish trend reversal signals.

Here you will find how to deal with such patterns with Gap ups and the key features or characteristic to remember that can ultimately help you to perform a better trade.

Physical appearance and market interpretation

It is a 2 candlestick pattern formed with one bearish and other bullish candlesticks. Each has their own significant interpretations.

  1. The first candle is bearish after a downtrend or pull-back.
  2. The second candlestick is bullish and there is potentially gap up in the price value of the close price of the bearish candle and open price of the bullish candlestick.
  3. The second candlestick should have no or very small shadow for better interpretation.
Bullish kicker example__1
Source: Economic Times

Find 5 critical signs of candlestick chart

This type of pattern usually gives the mood swing in the market. The trend that is bearish which was coming in past few session where sellers were dominating the market are now have lost their control

The gap once created by the bullish signal very well explains that the close price of the bearish candlestick is now has become a history and market won’t go down to that level rather would increase in upside direction driven by buyers.

Here all calculations and indicators that were showing bearish trend have now no relevance with the gap up and the trend is reversed.

This is where candlestick helps you to judge that market has changed its direction and sellers cannot do anything to drive the market.

So you can say that there is no confusion left in the market and bulls are here to drive the market

Condition of use

It works well well after a downtrend. But it is not necessarily to be a downtrend.

Yes if you find such pattern after a pullback or small trend reversal you can predict the bullish reversal nature that is building in the market. So it is not always mandatory to find out strong bearish trend before analyzing a bullish kicker chart pattern

How to trade with Bullish Kicker Candlestick Pattern

Trading with Bullish Kicker Candlestick pattern becomes easy when you train your eyes to find them easily and at the right time. Here are few examples that may help you to identify a better pattern and trade with a greater assurance.

Bullish kicker example__2
Source: Economic Times

Bullish kicker example__3
Source: Economic Times

Key elements to remember

    1. 2 candlestick chart pattern
    2. First one bearish and the second one bullish with a gap up in between the close price and open price
    3. Can be helpful where technical indicators fail to work and interpret the market
    4. You can find this after a downtrend or pull back, give the same interpretation of strong bullish trend reversal.

Learn Spinning top and Doji candlestick pattern, a strong trend reversal signal.

Bottom Line

This is one of the strongest reversal patterns in the market. This eliminates the confusion in the market and previous all calculation and predictions won’t work here as gap up is formed and now bulls will drive the market

You need to take advantage of candlestick patterns where technical indicators fail to interpret market conditions. At last, remember to take the risk that you can manage as the market has potential to eat up all your principal amount leaving you behind to suffer a huge loss.


Post Author: Sushant Putatunda

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