Kicker is a two candle reversal pattern that is considered by many among the best signals. It indicates a dramatic change in trend and an equally dramatic change in sentiment. In the bullish version of the pattern, the first candle would be a strong bearish one with the open at the high and close at the low. The second candle would be a bullish candle with the open & low being the same and the closing taking place at the day high. The entire range of the second candle would be higher than the first candle. The bearish version would show the exact opposite order.
Most Used Trends of Kicker Pattern
Advantages & Limitations of Bullish & Bearish Kicker Pattern
The pattern is not found very frequently and also, not as successful as thought of by the believers. The success rate of both the bullish and bearish editions hover around 55% at most. The success rate increases a bit if both the candles are tall. The traders can also trust the pattern a bit more if it takes place in the overbought (or oversold) state of the trend. Another important thing for the traders would be the volume pattern for those candles. High volume for the candles, especially the second one, increases the success rate.