Peeling back a layer, the pattern is made up of 3 candles. The first is a bearish candle that is in line with the trend. The second candle is similar and the trend is being continued. However, the third candle is a gap up and does not fill the gap, indicating that the bulls may have entered the market.
As with any candlestick pattern, the kicking candlestick pattern is not certain but rather a potential shift in the current market. When looking for this setup, you may also want to consider the volume on the gap up to see if there were more people behind the move. With that in mind, you can also look at momentum indicators to see if this gap up is warranted given the current market conditions.
If the gap up is filled, this would negate the pattern and you may want to assume the current trend is in place. Implement this into a demo account using your current setup to become acclimated and see if it fits your style. Also, be sure to research on the Internet and find what may fit you best. Macroaxis has many wonderful tools and information that can potentially give you an edge in your trading and investing.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
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