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 MARKETS
Articles  Monday January 9 , 2012 07:32 GMT
Technical pattern's identification: Kicking Pattern

Official terminology: It is a reversal pattern, where a black Marubuzo candlestick is followed by a white Marubuzo in case that the trend was bearish and then the reversal starts, taking the instrument upwards; but when a white Marubuzo is followed by a black one then the trend will be changed from bullish to bearish. 

Notes:

  • The black Marubuzo: It is formed when the price open with the high of the day and the close is the low of the day.
  • The white Marubuzo: It is formed when the price open with the low of the day and the close is the high of the day.
  • When gaps occur in the two cases, the pattern obtains more efficiency.
  • Volume confirmation solidifies the pattern as well.

Reliability:

High

Psychological analysis:

When the bullish kicking pattern gaps up, accompanied by gradual volume increase, it reflects how the bulls won the battle, taking the instrument to close at its high, reversing the trend obviously and vice versa when it is a bearish case.

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