What is Bearish Kicker Candlestick Pattern?

A bearish kicker is a candlestick pattern that consists of two candles, and that’s believed to signal a coming swing to the downside.

A bearish kicker can be formed in an uptrend or downtrend and is made up of a bearish candle that’s preceded by a gap to the downside and a bullish candle.

1. First Candle: A bullish candle (white or green)
2. Second Candle: A large bearish candle (black or red) that:

• Opens below the low of the first candle
• Closes below the low of the first candle

• The Bearish Kicker pattern indicates a strong rejection of the previous uptrend, and the price may start falling sharply.
• The large bearish candle suggests a strong bearish momentum.

How to Identify a Bearish Kicker Candlestick Pattern

A bearish kicker can develop despite the trend direction and is a strong bearish signal. Here is how you can identify a bearish kicker candlestick pattern.

• The first candle is a bullish (green) candle.
• The second candle gaps up and opens above the high of the first candle.
• The second candlestick continues down and becomes a bearish candle.
• It’s essential that the upper wick of the second candle doesn’t fill the gap.

How to trade using a Bearish Kicker Candlestick Pattern

When a trader identifies a Bearish Kicker pattern on a particular stock chart, you can enter into the trade in the next candle after the Bearish Kicker pattern emerges. The stop loss should be placed at the high of the previous candle.

Learn – What is Tweezer Top pattern?

Bullish & Bearish Kicker criteria

• The first day’s open and the second day’s open are the same.
• The price movement is in the opposite direction from the opening price.
• The trend has no relevance in a kicker situation.
• The signal is usually formed by surprise new before or after market hours.
• The price never retraces into the previous day’s trading range.

Live Example

 

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