The Kicking candlestick pattern is a significant reversal indicator, comprised of two marubozu candles that move in opposite directions, appearing with a gap between them. The distinct characteristic of this pattern is the lack of shadows, indicating a strong momentum change.
Pattern Composition:
The Kicking function identifies this pattern by first ensuring both candles are marubozu. It then checks for the opposing directions between the two candles and verifies the presence of a gap, confirming the Kicking pattern.
Trading Insights:
The Kicking pattern provides valuable insights to traders:
Traders might consider opening positions that align with the reversal indicated by the Kicking pattern, bearing in mind to always incorporate other technical indicators and analyses to mitigate risks and confirm the pattern's implications.
Considerations:
Though the Kicking pattern can be a reliable indicator of a trend reversal, it is essential for traders to look out for confirmation through volume analysis, other candlestick patterns, or technical indicators. Being vigilant and ensuring a holistic approach to interpreting these signals ensures better risk management and decision-making in the volatile world of trading.