Understanding the Kicking Marubozu

What is the Kicking Marubozu?

The Kicking Marubozu pattern is a strong reversal signal that combines the Kicking pattern with a Marubozu candlestick. A Marubozu is a candlestick with no shadows, meaning the open and close prices are the highest and lowest points of the candle. The Kicking Marubozu pattern is characterized by a significant gap between a Marubozu candlestick and the next candlestick, indicating a powerful shift in market sentiment.

How is the Kicking Marubozu Identified?

The Kicking Marubozu pattern is identified by:

1. Marubozu Candle: The first candlestick in the pattern is a Marubozu, which has no shadows.
2. Gap Opening: The second candlestick opens at the same level as the close of the Marubozu but in the opposite direction.
3. Opposite Direction: The second candlestick is in the opposite direction to the Marubozu (i.e., if the Marubozu is bullish, the second candle is bearish, and vice versa).
4. Significant Close: The second candlestick closes in the direction opposite to the Marubozu, confirming the reversal.

When to Use the Kicking Marubozu

The Kicking Marubozu pattern is used to:

• Confirm Strong Reversal: It signals a strong reversal in the market, either bullish or bearish, depending on the direction of the second candlestick.
• Identify Key Entry Points: Traders can use this pattern to identify significant entry points in the direction of the reversal.

Formula Example

To identify the Kicking Marubozu pattern:

1. Check for Marubozu: Ensure the first candlestick is a Marubozu (no shadows).
2. Verify Gap: The second candlestick should open at the close of the Marubozu.
3. Confirm Opposite Direction: The second candlestick should be in the opposite direction of the Marubozu.
4. Verify Close: The second candlestick should close in the direction opposite to the Marubozu.

For example:

• First Candle (Bullish Marubozu): Opens and closes with no shadows.
• Second Candle (Bearish): Opens at the close of the Marubozu and closes downward, confirming the reversal.

Parameters

The parameters for identifying the Kicking Marubozu 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 Marubozu pattern in the last N candles.

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

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

Conclusion

The Kicking Marubozu candlestick pattern is a powerful reversal indicator combining the Kicking and Marubozu patterns. It is used to signal strong shifts in market direction and identify significant trading opportunities.