Community Forex Questions
What is kicker pattern?
The Kicker Pattern, also known as the False Spike Pattern, is a common chart pattern used in technical analysis to identify potential reversals in price trends. It is primarily observed in candlestick charts and is characterized by a sharp price movement followed by a sudden reversal in the opposite direction.
The pattern typically consists of a long candlestick, known as the "kicker," which is followed by a candlestick in the opposite direction, indicating a rapid change in market sentiment. The kicker candlestick opens with a gap in relation to the previous candle and closes near its high or low, showing strong buying or selling pressure. The following candlestick then opens in the opposite direction, indicating a reversal.
Traders often interpret the Kicker Pattern as a strong signal of a trend reversal. It suggests that the market sentiment has dramatically shifted, and the new direction is likely to persist. Traders can use this pattern to make informed decisions, such as entering or exiting positions, placing stop-loss orders, or identifying potential price targets.
It is important to note that while the Kicker Pattern can provide valuable insights, it should be used in conjunction with other technical indicators and analysis tools to confirm its reliability.
The pattern typically consists of a long candlestick, known as the "kicker," which is followed by a candlestick in the opposite direction, indicating a rapid change in market sentiment. The kicker candlestick opens with a gap in relation to the previous candle and closes near its high or low, showing strong buying or selling pressure. The following candlestick then opens in the opposite direction, indicating a reversal.
Traders often interpret the Kicker Pattern as a strong signal of a trend reversal. It suggests that the market sentiment has dramatically shifted, and the new direction is likely to persist. Traders can use this pattern to make informed decisions, such as entering or exiting positions, placing stop-loss orders, or identifying potential price targets.
It is important to note that while the Kicker Pattern can provide valuable insights, it should be used in conjunction with other technical indicators and analysis tools to confirm its reliability.
In forex trading, a kicker pattern is a significant reversal signal characterized by two consecutive candlesticks with opposite colors and large price gaps between them. The pattern suggests a sudden and strong shift in market sentiment. The first candle opens in the direction of the existing trend but then experiences a sudden gap in the opposite direction. The second candle continues this momentum, opening at the same level as the previous candle's close. The kicker pattern indicates a swift change in market sentiment and is closely watched by traders as it may signal the start of a new trend, providing valuable insights for decision-making in the forex market.
Jul 11, 2023 19:48