A ‘Kicking Pattern’ is a rare highly credible setup that applies whether market is bullish, bearish, or in a congestion. They consist of two Marubozu candles which combination determines whether the setup is bullish or bearish. For the ‘Bearish Kicking Pattern’ the first candle will be a white marubozu followed by a black marubozu that gaps down at its open. The pattern derives its name from how it appears sentiment in the market has been kicked lower with the second candlestick opening suddenly all the way down below the length of the firsts’ body.
Technical Description
1) The first candlestick for the pattern will be a white marubozu, the preceding price action is irrelevant.
2) The second candle will be a black marubozu that opens with a gap under the opening price of the first.
3) Ideally both candlesticks should be a Marubozu though we can allow for very small wicks and tails to appear.
Mark’s Perspective
The rarity of a kicking pattern often means that people will pass over their formation as a confusing mix of candles. Although there is no explicit requirement the size of the bodies reflect the severity of the change in sentiment, the bigger the candlesticks bodies the more likely a bear market will follow.
No confirmation is required when trading the pattern, aggressive shorts may be taken at market, though having another bear gap in the succeeding candlestick or a lower close will be desirable. Stop losses will be placed above the patterns highs though in cases of a big black candle stops may be placed tightly above the gap between the two candlesticks.