Bullish Kicking Pattern

by · December 31, 2009

BULLISH KICKING PATTERN (BKP)
a Black Marubozu followed by a white one

Characteristics:
1. The direction of the market is not important;
2. Day 1 has a Black Marubozu; and
3. On Day 2, there is a White Marubozu that gaps upward.

Brief Explanation:
The BKP is a strong sign that the market is headed upward. Unlike most other patterns, the previous market direction is not important for this pattern. The market is headed up with the BKP as the prices gap up the following day. The prices do not enter the prior day’s range. Instead, they close with another gap.

Notes:
1. Both are Marubozu, so both Day 1 and Day 2 should have only very small shadows, if ever they do have
2. The BKP’s reliability is high, but a confirmation of the reversal on Day 3 is required (through a white stick, a large gap up or a higher close).