'Kicking' Candlestick Chart Pattern A Valuable Tool for Traders
Candlestick chart pattern analysis is a method of predicting impending price changes that has been used by the Japanese for centuries. With its long history of use, the method has proven to be reliable. Among the various candlestick patterns in use, just a few have stood the test of time. One such pattern is known as the "Kicking" candlestick pattern.
The Kicking candlestick chart pattern is yet another addition to the Forex trader's toolbox that provides a valuable indicator of imminent price reversal.
How Will You Recognize a Kicking Candlestick Pattern?
When a long white candlestick follows a long black one, this forms a bullish kicking pattern. In this instance, neither candlestick evidences wicks (also called shadows) at the bottom or the top. These are known as "Marubuzo" candles. The key component of a bullish kicking pattern is the gapping of a white candlestick over the prior High price of the black candlestick.
The opposite of the bullish kicking pattern is known as a "bearish" pattern. Conversely, this happens when a long black candlestick follows a long white one. As in the prior example, there are no high or low shadows evident on either candlestick. Again, traders will observe a gap between the Low price of the white candlestick and the opening of the black candlestick that follows.
Implications of Kicking Patterns
It's important to understand that a Kicking pattern is not limited to a specific point in a trend. It may appear at the end, the beginning, or the mid-point. Regardless of what the prevailing trend looks like, a Kicking candlestick pattern indicates that a price shift is likely to occur soon, whether the direction indicated is bearish or bullish.
In observing the movement of the pattern, the relative strength of the trend reversal is rather obvious. The price gap that opens above the black candle (the prior "down" period's High), in addition to the way in which the white candle rises and ends at the period's High, indicates that a strong bullish price reversal is imminent.
On the other hand, a bearish price action is evident when a black candle follows a white candle (that is, a price gap that opens beneath the previous "up" period's Low).
It is to your advantage as a trader to pay attention when a Kicking candlestick chart pattern appears. The indication it provides can be used to great advantage in strategizing profitable trades.
Article Source: FxTradingStock.com
About the Author
Want to see how the Kicking candlestick chart pattern looks like, then visit Rudolf Boquiren's Forex Trading System education website.
by: Rudolf Boquiren
Total views: 35
Word Count: 419
Date: Mon, 6 Dec 2010
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