Candlestick charts give the visual illustration of the decision making process of major market players and highlights the emotions influencing their decisions.
The visual illustration provided by candlestick charts give candlestick traders the ability to see when the overall market sentiment is changing and to quickly act upon that change.
By recognizing candlestick signals and reversal patterns, candlestick traders can position themselves on the right side of a trend and profit from a price action influenced by a news report released five or seven days later.
Knowledge of candlestick analysis combined with technical analysis (support, resistance, trend channels, moving averages…) give candlestick traders the ability to identify the current market trend, recognize a change in market direction and place trades with greater confidence and greater results.
So, what is the best candlestick pattern to trade? The kicker pattern.
The kicker pattern represents a 180-degree change in traders and investors sentiment. It is such a strong reversal pattern that its position in a trend is almost irrelevant.
The pattern is made of two candles of opposite colors. The color of the first candle may or may not be the same color of the current market direction. The main characteristic of the kicker pattern is that the opening price of the first candle and the opening price of the second candle are the same.
The difference between the two candles is that after the open, the price moves in the opposite direction. The bigger the candle, the stronger the reversal pattern. This is true for all of the candlestick reversal patterns.
Learn more about the bullish kicker in the video below.
Do you have a question to ask? Write to us. We are here to help
Good Trading!
Trading Risk Disclaimer
All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. SharperTrades, LLC is not registered as an investment adviser with any federal or state regulatory agency. This is not an offer to buy or sell stocks, cryptos, forex, futures, options, commodity interests or any other trading securities.