To see the performance of the pattern in your stock exchange in the context of other stock markets please examine the table below. Find your stock market there and see how it ranks among the others. This will give you an idea about the pattern’s strength and reliability and help you in your buying decisions.
This pattern consists firstly of a black Marubozu and then a white Marubozu. After the black Marubozu, the market opens above the prior session’s opening, forming a gap between the two candlesticks.
1. The market is characterized by a prevailing downtrend.
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
The Bullish Kicking ideally should consist of a black Marubozu then a white Marubozu with a body gap in between. However, we accept normal or long candlesticks and a null body gap, too. This way, the Bullish Separating Lines Pattern, which is a continuation pattern (that is not covered here), is also included in a modified manner as a reversal pattern.
The pattern is a strong sign showing that the market is headed upwards. It appears in a downtrend and on the first day a strong black candlestick (or a black Marubozu) further confirms the bearishness. The next day prices open at or above the previous day’s open, causing a gap. This huge gap urges the bulls to take action. The market heads up forming a white candlestick (or a white Marubozu).
Buy/Stop Loss Levels
The confirmation level is defined as the last close. Prices should cross above this level for confirmation.
The stop loss level is defined as the last low. Following the BUY, if prices go down instead of going up, and close or make two consecutive daily lows below the stop loss level, while no bearish pattern is detected, then the stop loss is triggered.