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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.
BEARISH KICKING
Definition
This pattern starts with a white Marubozu followed by a black Marubozu. After the white Marubozu, the market opens below the previous session’s opening price, creating a gap between the two candlesticks.
Recognition Criteria
1. The market is currently defined by a dominant upward trend.
2. On the first day a white Marubozu (or a white candlestick) is observed.
3. Then we see a black Marubozu (or a black candlestick) on the second day.
4. The second day opens lower with a body gap.
Pattern Requirements and Flexibility
The Bearish Kicking pattern ideally consists of a white Marubozu followed by a black Marubozu with a gap between their bodies. However, normal or long candlesticks and the absence of a body gap are also acceptable. This allows the Bearish Separating Lines Pattern, typically a continuation pattern, to be modified and included as a reversal pattern.
Trader’s Behavior
This pattern is a strong indicator of an impending downward market trend. It appears in an uptrend, where the first day features a strong white candlestick, further confirming the bullish sentiment. On the second day, prices open below or at the previous day’s open, creating a significant gap. This gap prompts bearish traders to take action, leading the market downward, signified by a black candlestick.
Sell/Stop-Loss Levels
The confirmation level is determined by the last close. For confirmation, prices should fall below this level.
The stop-loss level is defined as the last high. If, following the bearish signal, prices rise instead of falling and either close or make two consecutive daily highs above the stop-loss level, without detecting any bullish pattern, the stop-loss is triggered.