BULLISH KICKING
Definition
This pattern begins with a black Marubozu candlestick, followed by a white Marubozu candlestick. After the black Marubozu, the market opens above the prior session’s opening, creating a gap between the two candlesticks.
Recognition Criteria
1. The market is currently defined by a dominant downward trend.
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
Ideally, this pattern consists of a black Marubozu followed by a white Marubozu with a gap between their bodies. However, we also accept normal or long candlesticks and a null body gap. In this way, the Bullish Separating Lines Pattern, which is generally a continuation pattern (not covered here), is included in a modified manner as a reversal pattern.
Trader’s Behavior
This pattern is a strong indicator that the market is heading upwards. It appears during a downtrend, where a strong black candlestick (or a black Marubozu) on the first day further confirms the bearish sentiment. The following day, prices open at or above the previous day’s opening, creating a gap. This significant gap motivates the bulls to take action, driving the market upwards and forming a white candlestick (or a white Marubozu).
Buy/Stop-Loss Levels
The confirmation level is set at the last closing price. For confirmation, prices need to surpass this level.
The stop-loss level is set at the last low. After a BUY signal, the stop-loss is triggered if prices decline instead of rising and either close below the stop-loss level or record two consecutive daily lows below it, without any bearish pattern being detected.