How to Trade the Bullish Kicker Candlestick for Maximum Gains

The Bullish Kicker candlestick pattern is one of the strongest bullish candlestick reversal signals traders watch for in technical indicators. It suggests a dramatic shift in market sentiment, where buyers completely take control after a period of bearish pressure. This candlestick chart pattern is rare but highly significant when it appears.

If you’re looking for a chart pattern that shows buyers have stepped in aggressively, this is one to pay attention to. It’s commonly seen before major price breakouts and can offer strong trade setups when used correctly.

The Bullish Kicker candlestick pattern forms when a sharp bullish candlestick completely reverses the previous bearish candlestick, with a gap between them. The first candle is a strong, bearish candle, signaling downward momentum. The second candle gaps up and opens above the previous opening price, completely ignoring the prior price trend, and then closes strongly, forming a bullish candle.

This bullish reversal pattern is a clear sign that market participants have flipped investor sentiment instantly, often due to major news, earnings reports, or significant fundamental analysis factors. The key characteristic is that the gap between the two candles shows zero overlap, emphasizing the power shift.

The Bullish Kicker candlestick pattern is illustrated below.

• Appears after a downtrend or a pullback, signaling a strong reversal pattern.
• Consists of two candles: A strong bearish candlestick, followed by a bullish candlestick that gaps up and shows no overlap with the prior candle.
• The larger the gap, the stronger the price trend signal.
• Works best with high volume on the second candle, confirming strong buying interest.
• It is a trading indicator of a major shift in market sentiment, often triggered by external factors.

This Kicker-engulfing pattern reflects a sudden and decisive shift in control from sellers to buyers.

• The first candle, a bearish candlestick, represents continued selling pressure, suggesting the downtrend is intact.
• The second candle, a bullish candle, gaps up significantly and shows no attempt to fill the gap, signaling that buyers immediately took over.
• The strong upward trend shows that sellers were caught off guard, and short-covering may drive prices even higher.
• The lack of overlap between the two candles is critical. It confirms that the market has completely ignored the previous price trend, showing a clear break in momentum.

Market Conditions

The Bullish Kicker is most effective after a sustained downtrend or at key support levels. It suggests a dramatic change in market sentiment and is often followed by a strong upward trend.

Volatility Considerations

In high-volatility markets, gaps may be exaggerated, making the chart pattern more powerful but also riskier. In low-volatility markets, the pattern is more reliable but may require additional confirmation before making a trading decision.

• Stop-loss placement: Below the low of the first candle to minimize downside risk.
• Entry strategy: Traders typically enter at the close of the second candle or on a slight pullback.
• Profit targets: Use previous resistance levels or a risk-reward ratio of at least 2:1.

• The second candle retraces after the gap up: If the price closes lower than the gap, the signal weakens.
• Gap fills quickly: A partial or full retracement of the gap suggests the market isn’t fully convinced of the trend reversal.
• Low volume on the second candle: If volume remains low, the reversal pattern may not be sustainable.

To trade the Bullish Kicker systematically:

• Identify a strong downtrend or pullback before the chart pattern appears.
• Detect a large bearish candlestick, followed by a bullish candlestick that gaps up and has no overlap with the previous candlestick.
• Confirm with high volume on the second candle.
• Set a stop-loss below the low of the bearish candlestick.
• Test the pattern in various market conditions before applying it in live trading.

Below is a simple AFL script to detect the Bullish Kicker candlestick pattern in Amibroker:

// Bullish Kicker AFL Code for Amibroker
_SECTION_BEGIN("Bullish Kicker");

FirstBearish = Ref(Close, -1) < Ref(Open, -1);
GapUp = Open > Ref(Close, -1) AND Open > Ref(High, -1);
StrongBullish = Close > Open AND Close > Ref(Close, -1);

BullishKicker = FirstBearish AND GapUp AND StrongBullish;

PlotShapes(IIf(BullishKicker, shapeUpArrow, shapeNone), colorGreen, 0, High);

_SECTION_END();

This script helps traders use it to spot Bullish Kicker candlestick patterns on candlestick charts.

The Bullish Kicker candlestick pattern is one of the strongest bullish candlestick reversal patterns, indicating a sharp shift in market sentiment. It consists of a strong bearish candlestick, followed by a bullish candlestick that gaps up and shows no overlap, confirming a shift in market participants’ direction.

This chart pattern is highly reliable when combined with technical indicators like moving averages and volume confirmation. Traders use it to enter long positions when buying momentum takes over completely. However, like all candlestick chart patterns, backtesting and risk management are crucial before trading it live.

Links to articles about other Candlestick Patterns

1. Doji
2. Hammer
3. Inverted Hammer
4. Bullish Engulfing
5. Bearish Engulfing
6. Morning Star
7. Evening Star
8. Shooting Star
9. Hanging Man
10. Piercing Pattern
11. Dark Cloud Cover
12. Three White Soldiers
13. Three Black Crows
14. Dragonfly Doji
15. Gravestone Doji
16. Spinning Top
17. Marubozu
18. Tweezer Top
19. Tweezer Bottom
20. Bullish Harami 
21. Bearish Harami
22. Rising Three Methods
23. Falling Three Methods
24. Bullish Abandoned Baby 
25. Bearish Abandoned Baby 
26. Bullish Kicker 
27. Bearish Kicker
28. Three Inside Up
29. Three Inside Down
30. Upside Gap Two Crows
31. Mat Hold
32. Upside Tasuki Gap
33. Downside Tasuki Gap