Definition

The Kicker pattern is one of the most powerful candlestick reversal patterns. It consists of two candles with opposite bodies and a clear price gap between them. The Kicker reflects an abrupt shift in market sentiment – from bullish to bearish or vice versa – often triggered by major news or unexpected events.

There are two types:

Bullish Kicker: Occurs in a downtrend. The first candle is a long bearish (red) candle. The second opens with a gap down (sharp decline) but then rallies strongly, forming a long bullish (green) candle that closes above the open of the first candle. The gap acts as a strong resistance.

Bearish Kicker: Occurs in an uptrend. The first candle is a long bullish (green) candle. The second opens with a gap up (sharp rise) but then plummets, forming a long bearish (red) candle that closes below the open of the first candle.

How to Identify

To identify a Kicker:

Confirm the current trend (up or down).

The first candle has a long body in the trend direction.

The second candle has a long opposite body, and its opening price gaps clearly away from the first candle's close. The larger the gap, the stronger the signal.

The second candle should close near or beyond the first candle's open, confirming the reversal.

*Generic chart illustrating two candles with a gap and opposite bodies.*

How to Trade

A Kicker is a strong signal, but never trade immediately after the second candle closes. Wait for confirmation:

Entry: Place a buy (for Bullish Kicker) or sell (for Bearish Kicker) after price breaks the high/low of the second candle, or after a small confirmation candle.

Stop Loss: Below the low of the second candle (for Bullish Kicker) or above the high of the second candle (for Bearish Kicker).

Take Profit: Use support/resistance levels or trailing stop. The momentum can be strong, so hold until a new reversal pattern appears.

Real Example

On the EUR/USD H4 chart, assume a downtrend. A Bullish Kicker forms after ECB news. The first red candle falls sharply; the next opens gap down but surges, closing above the red candle. A trader buys after price breaks the second candle's high, SL below its low. Price then rallies 200 pips.

Common Mistakes

Confusing with Engulfing: Kicker has a clear gap; Engulfing does not. No gap means no Kicker.

Trading when the gap is too large: Large gaps increase the risk of gap fill. Wait for confirmation.

Ignoring higher timeframes: Kicker on small timeframes is noisy. Prefer H4/D1.

Conclusion

The Kicker is a rare but powerful signal. Combine with volume and news for higher reliability. Always manage risk strictly.

Content is for reference only, not investment advice. Forex trading carries high risk.

Kicker Pattern - Powerful Reversal