Definition - In this pattern, a white Marubozu will appear before being followed by a black Marubozu. After the first, the market will open lower than the previous day’s open and a gap will be formed between these two lines.
- On the first day, a white candlestick or Marubozu will show in a market that is experiencing a prevailing uptrend.
- On the second day, a second candlestick or Marubozu will form but this time, it will be on a black day.
- A body gap will be created by the second day opening lower than the previous day.
Patterns and Flexibility
Containing both a white and black Marubozu, the Bearish Kicking pattern will boast a gap in between the two. However, the pattern will also be considered true if a normal or long candlestick forms a null body gap. With this in mind, the Bearish Separating Lines pattern can be included under this name as a reversal pattern.
Behaviour of Trader
After this pattern is seen, traders will be aware that the market is likely to head downwards. Occurring during an uptrend, the Bearish Kicking starts with a white candlestick which suggests that the trend is set to continue. After opening below the previous day’s open, a gap is caused on the second day which suggests that the bears need to act. On the second day, a black candlestick is formed and the market tumbles down.
Sell/Stop Loss Levels
For there to be confirmation, the prices will have to cross below the stop loss level which, in this pattern, is considered as the last close. Additionally, the stop loss is seen as the last high. If the prices rise following the bearish signal, the stop loss will be triggered if there are two days of highs above the stop loss level assuming that there is no bullish pattern.