Online Trading Blog

  • Weekly Stock Market Insights.
  • Trading Strategies, Products & Info
  • Indicators, Candlesticks & Patterns
  • Be a Subscriber be a Happy Trader
  • Click here to Explore the sitemap.

 

Thursday, April 16, 2009

Bearish Kicking Candlestick Pattern

Bearish kicking is a bearish reversal candlestick pattern, which indicates the start of a new downtrend. It is a rare but highly reliable formation consists of two candlesticks – one bullish (white or colorless) candlestick and one bearish (black or colored) candlestick. Both are marubozu candlesticks (having no upper and lower shadows, or having very small shadows). Bearish kicking pattern has a strong resemblance to bearish separating lines pattern, the difference is that it has a gap between the two candlesticks.



Requirements of bearish kicking candlestick pattern include,
  • The prior trend is not important with this pattern.
  • On first day, there should be a bullish marubozu candlestick.
  • On second day, there should be a bearish marubozu candlestick which opens below a downside gap.

The opening of second candlestick way below the closing of first day candlestick and the continuous bearish activity to close the day in a new low sends a strong signal that the market is bearish. More over, the price of second day never enters first days range, giving the indication that it is difficult to move the prices up.

Bearish kicking candlestick pattern is a highly reliable pattern and the reliability increases with increase in gap, increase in real-body and trading volume of second day candlestick. Confirmation of bearish trend is suggested, which can be a lower gap (occurs many times), a bearish candlestick or lower close on next trading day.

NobleTrading.com Offers Online Stock Trading, Online Options Trading
Online Futures Trading, Online Forex Trading
Worldwide Brokerage Service, Day Trading Brokerage

Privacy Statement | Margin Disclosure | Risk Disclosure | Business Continuity Plan | Site Map | Order routing Disclosure Penson | Blog

The risks involved with online trading can be financially substantial. Online trading system delays or market volatility may adversely affect online trading related services. Not all securities, services or products are available in all countries or U.S. states. Please consider whether online trading is compatible with your financial resources and individual circumstances. Online trading in extended hours entails additional risks such as lower trading liquidity, higher volatility, more rapidly changing prices, wider spreads, and the like. Nothing herein should be deemed as an offer or solicitation of securities trading, products or services in any jurisdiction in which online trading brokerage services are not properly licensed. SIPC insurance does not apply to futures or forex business.

Brokerage Services by NobleTrading.com Member finra/sipc/nfa/pcx
Copyright NobleTrading.com ®, Inc 2009. All rights reserved.