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To evaluate the performance of the pattern in your stock exchange within the context of other global markets, please refer to the table below. Locate your stock market to see its ranking among others. This will provide insights into the pattern’s strength and reliability, aiding you in your buying and selling decisions.
BULLISH KICKING
Definition
This pattern begins with a black Marubozu candlestick, followed by a white Marubozu candlestick. After the black Marubozu, the market opens above the prior session’s opening, creating a gap between the two candlesticks.
Recognition Criteria
1. The market is currently defined by a dominant downward trend.
2. On the first day a black Marubozu (or a black candlestick) is observed.
3. Then we see a white Marubozu (or a white candlestick) on the second day.
4. The second day opens higher with a body gap.
Pattern Requirements and Flexibility
Ideally, this pattern consists of a black Marubozu followed by a white Marubozu with a gap between their bodies. However, we also accept normal or long candlesticks and a null body gap. In this way, the Bullish Separating Lines Pattern, which is generally a continuation pattern (not covered here), is included in a modified manner as a reversal pattern.
Trader’s Behavior
This pattern is a strong indicator that the market is heading upwards. It appears during a downtrend, where a strong black candlestick (or a black Marubozu) on the first day further confirms the bearish sentiment. The following day, prices open at or above the previous day’s opening, creating a gap. This significant gap motivates the bulls to take action, driving the market upwards and forming a white candlestick (or a white Marubozu).
Buy/Stop-Loss Levels
The confirmation level is set at the last closing price. For confirmation, prices need to surpass this level.
The stop-loss level is set at the last low. After a BUY signal, the stop-loss is triggered if prices decline instead of rising and either close below the stop-loss level or record two consecutive daily lows below it, without any bearish pattern being detected.