Definition: Get the highest rated stock from Americanbulls for this pattern >>>
A White Marubozu is followed by a sharply lower gap
when it opens during the second day. The second day
opening is even below the prior session’s opening
(forming a Black Marubozu). Such a pattern is called
a Bearish Kicking Pattern.
Recognition Criteria:
1. Market direction is not important.
2. We see a White Marubozu in the first day.
3. Then we see Black Marubozu day that gaps downward on
the second day.
Explanation:
Bearish Kicking Pattern sends a strong signal suggesting
that the market is now heading downward. The previous
market direction is not important in this pattern unlike
most other candlestick patterns. The market has been
in a trend when prices gap down the next day in case
of Bearish Kicking Pattern. The prices on the second
day never enter into the previous day's range and we
have a close with another gap.
Important Factors:
Both of the candlesticks do not have shadows (or very
small shadows if any). In other words both are Marubozu.
The Bearish Kicking Pattern is similar to the Bearish
Separating Lines Pattern except that instead of the
open prices being equal, in the Bearish Kicking Pattern
a gap occurs.
The Bearish Kicking Pattern is highly reliable but
still a confirmation may be necessary, and this confirmation
may be in the form of a black candlestick, a large gap
down or a lower close on the next trading day.
