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Definition of 'Kicker Pattern'
A two-bar candlestick pattern that is used to predict a change in the direction of the trend for an asset's price. This pattern is characterized by a very sharp reversal in price over the span of two candlesticks; traders use it to determine which group of market participants is in control of the direction.
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Investopedia explains 'Kicker Pattern'
This candlestick pattern is deemed to be one of the most reliable reversal patterns and usually signifies a dramatic change in the fundamentals of the company in question. To traders observing the kicker pattern, it may seem like the price has moved too quickly, and they may wait for a pullback; however, those traders may find themselves looking back and wishing they had entered a position when they originally identified the kicker pattern.
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Go beyond the basics! Learn to identify and trade island reversals, kicker patterns and more.
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Enhance trend isolation and prediction of future prices with this technique.
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