Understanding the Kicking

What is the Kicking?

The Kicking pattern is a strong reversal pattern that indicates a major shift in market sentiment. It consists of two candlesticks that open at the same level, with a significant gap between them. The first candlestick is either bullish or bearish, while the second candlestick is the opposite and closes in the opposite direction. This pattern suggests a strong shift in market direction, either bullish or bearish.

How is the Kicking Identified?

The Kicking pattern is identified by:

1. Gap Opening: The second candlestick opens at the same level as the close of the first candlestick but in the opposite direction.
2. Opposite Direction: The first candlestick is bullish if the second is bearish, and vice versa.
3. Significant Close: The second candlestick closes in the direction opposite to the first, confirming the reversal.

When to Use the Kicking

The Kicking pattern is used to:

• Confirm Reversal: Look for this pattern at the end of a strong trend to signal a potential reversal.
• Identify Entry Points: Use this pattern to identify potential entry points in the direction of the reversal.

Formula Example

To identify the Kicking pattern:

1. Check Gap: Ensure the second candlestick opens at the same level as the close of the first candlestick.
2. Verify Opposite Direction: The first candlestick must be in one direction (bullish or bearish) and the second candlestick in the opposite direction.
3. Confirm Close: The second candlestick must close in the direction opposite to the first candlestick.

For example:

• First Candle (Bullish): Opens and closes with an upward trend.
• Second Candle (Bearish): Opens at the close of the first candle and closes downward, confirming the reversal.

Parameters

The parameters for identifying the Kicking pattern include:

• Data: Defines the type of data to use for the pattern.

  • Value: ohlc
  • Description: The pattern uses Open, High, Low, and Close prices.

• Previous N Candles: Number of preceding candles to check.

  • Default Value: 1
  • Min Value: 1
  • Max Value: 300
  • Description: Checks for the Kicking pattern in the last N candles.

• Pattern Type: Defines whether to look for a Bullish or Bearish Kicking pattern.

  • Default Value: :bullish
  • Options: :bullish, :bearish
  • Description: Specifies the type of Kicking pattern to identify.

Conclusion

The Kicking candlestick pattern is a powerful indicator of a trend reversal. It is characterized by a gap opening and a significant shift in market direction. Traders should look for this pattern at the end of strong trends to identify potential reversals and entry points.