Definition - In all, this pattern includes both a black and a white Marubozu. To start, the black Marubozu forms first before the market opens higher than the previous session. Therefore, a gap is formed between the two candlesticks.
- On the first day, the pattern begins with the formation of a black Marubozu in a market that is experiencing a prevailing downtrend.
- On day two, the white Marubozu forms.
- With a body gap, the second day will open higher.
Patterns and Flexibility
Ideally, the Bullish Kicking will see a black Marubozu and then a white Marabou with a body gap. However, a null body gap is generally accepted as is normal or long candlesticks. If the latter occurs, it will be seen as a Bullish Separating Lines Pattern and a reversal pattern.
Behaviour of Trader
Overall, this particular pattern is s strong signal that the market will turn upwards. After appearing in a downtrend, the first black Marubozu or candlestick will confirm this trend and the bearishness. Soon enough, a gap is caused by the prices opening above the open of the previous day. With this in mind, the bulls are forced into action and the increase occurs thus forming a white Marubozu or candlestick.
Buy/Stop Loss Levels
For there to be confirmation, the price will have to cross above the last close line which, in this case, is regarded as the confirmation level. For stop loss, this level will be determined by the last low. If the prices fall and two days of lows are seen beneath the stop loss level following the buy, the stop loss will be triggered assuming that there is no bearish pattern.