What is a kicker pattern?
A kicker pattern is a two-bar candlestick reversal pattern that signals a sudden and decisive change in market sentiment. It typically appears after the release of significant information and shows a sharp price reversal between two consecutive candlesticks. Traders use it to identify which group—buyers or sellers—has taken control of the market.
How it works
- The pattern consists of two candlesticks:
- Day 1 follows the prevailing trend (bullish in an uptrend, bearish in a downtrend).
- Day 2 opens at or beyond the previous day’s price (often creating a gap) and moves strongly in the opposite direction.
- The two candle bodies are usually opposite colors, visually highlighting the abrupt change in sentiment.
- A kicker implies a dramatic shift in investor attitude—often tied to new fundamental information—rather than a gradual continuation of the existing trend.
Bullish vs. bearish kickers
- Bullish kicker: Day 1 is bearish, followed by Day 2 opening higher (gap up) and moving strongly bullish. Signals a shift from selling pressure to buying pressure.
- Bearish kicker: Day 1 is bullish, followed by Day 2 opening lower (gap down) and moving strongly bearish. Signals a shift from buying pressure to selling pressure.
Example: bearish kicker
- Day 1: A bullish candlestick continues the uptrend.
- Day 2: A bearish candlestick opens at or below Day 1’s open (often with a gap down) and then declines further, reversing the prior day’s direction.
- A gap down on Day 2 generally strengthens the signal and increases the likelihood of continued price decline.
Reliability and trading considerations
- The kicker is one of the more powerful candlestick reversal signals but is relatively rare because it requires a rapid market reaction.
- It is most meaningful when it occurs in overbought or oversold conditions or after clear new information that justifies the sentiment shift.
- Traders often look for confirmation—such as increased volume, follow-through candles, or supporting technical indicators—before committing to a position.
- Because the pattern reflects a strong sentiment change, some traders enter immediately while others wait for a pullback; both approaches carry trade-offs between risk and missed opportunity.
Key takeaways
- The kicker pattern is a two-candle reversal signal that reflects a sudden shift in market control.
- It can be bullish or bearish depending on the direction of the reversal.
- The pattern is rare but powerful; confirmation and risk management are recommended before trading it.