Kicker Pattern

A kicker pattern is a technical analysis pattern that is used to identify potential reversals in the trend of a security. The pattern is characterized by a sharp decline in price followed by a period of consolidation. The consolidation period is typically characterized by a series of lower highs and lower lows. If the price breaks out of the consolidation period to the upside, it is considered a bullish signal. If the price breaks out of the consolidation period to the downside, it is considered a bearish signal.

The kicker pattern is often used in conjunction with other technical indicators to confirm the validity of the signal. For example, a bullish kicker pattern may be confirmed by a rising moving average or a bullish engulfing pattern. A bearish kicker pattern may be confirmed by a falling moving average or a bearish engulfing pattern.

The kicker pattern is a relatively simple pattern to identify, but it can be difficult to trade successfully. This is because the pattern can often be invalidated by a false breakout. A false breakout occurs when the price breaks out of the consolidation period but then fails to continue in the direction of the breakout.

Despite the risk of false breakouts, the kicker pattern can be a useful tool for identifying potential reversals in the trend of a security. By combining the kicker pattern with other technical indicators, traders can increase their chances of making successful trades.

Here are some additional details about the kicker pattern:

* The pattern is typically found in trending markets.
* The consolidation period typically lasts for at least two weeks.
* The breakout candle should be at least twice the size of the previous candle.
* The breakout candle should close above the resistance level of the consolidation period.

The kicker pattern can be a useful tool for traders who are looking to identify potential reversals in the trend of a security. However, it is important to remember that the pattern can be invalidated by a false breakout. By combining the kicker pattern with other technical indicators, traders can increase their chances of making successful trades.