Bullish Kicker
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
One of the most powerful reversal signals, consisting of two candlesticks. After a large bearish candle, the next day opens with a large gap up to form a large bullish candle. The second candle opens at or above the first candle's open, completely negating the previous day's price action. Often accompanied by dramatic fundamental changes (earnings surprises, policy changes, etc.), indicating an extremely strong bullish reversal.
Enter long at the open of the next candle after the second large bullish candle is confirmed. Or consider a market entry when the second candle opens significantly above the previous day's open.
Project 2-3 times the second bullish candle's range (close minus open) upward from the close. Kicker patterns can generate large moves, so set wider profit targets.
Place a stop-loss slightly below the second bullish candle's open (lower edge of the gap). If the gap is filled, consider the pattern failed.
Significantly increased volume on the second bullish candle is critical. A volume surge reflects the market's reaction to fundamental changes, greatly enhancing pattern reliability.