Kicker Pattern

The Kicker pattern is a high-conviction two-candle reversal that stands out for its speed and clarity. A strong candle in one direction is followed by a gap opening in the opposite direction, with the second candle closing firmly on the far side of that gap. This sudden rejection of the prior trend is one of the most reliable reversal signals in technical analysis, often triggering sharp moves as traders recognize the shift in momentum.

Pattern definition and anatomy

The Kicker pattern consists of exactly two candles. In a bullish Kicker (occurring after a downtrend), the first candle is bearish and closes near its lows, continuing the down-move. The second candle then gaps upward—opening above the first candle’s close—and closes well above its opening, firmly establishing itself in positive territory.

In a bearish Kicker (occurring after an uptrend), the first candle is bullish and closes near its highs. The second candle gaps downward, opening below the first candle’s close, and closes significantly below its opening.

The defining feature is the gap in the opposite direction. This is not a normal pullback or consolidation gap; it’s a violent rejection of the prior trend. The gap represents overnight sentiment shift, a news event, or a sudden flood of new capital entering the market from one side.

Psychological context

A Kicker pattern is rare enough that when it occurs, it carries outsized significance. The market has been trending one direction. Then, overnight or at the open, sentiment flips dramatically. New information has surfaced, or existing market participants have capitulated and reversed positions en masse.

Consider a bearish scenario: a stock has been falling for days or weeks. Shareholders are discouraged, shorts are profitable, and momentum is downward. Overnight, strong earnings or strategic news arrives. At the open, the stock gaps sharply higher. Shorts panic and cover. Long-term holders who were underwater suddenly see green. The bid strength is overwhelming, and the close is far into positive territory.

The speed matters. Unlike longer-term reversals that take weeks to develop, a Kicker reversal is instantaneous—one candle cycle. This instantaneity attracts fresh trading interest. Traders who missed the initial move see the gap and gap-fill opportunity and pile in. Momentum accelerates.

Reliability and false signals

The Kicker is one of the most reliable two-candle patterns, but it’s not infallible. The most common failure occurs when the gap is gapped back (filled) within the next one to three candles. This can happen if the news triggering the reversal is quickly contradicted or reinterpreted, or if the gap was exaggerated and represents an overshoot rather than a genuine trend change.

Another failure mode: the gap is real and the reversal is real, but the follow-through is weak. The candle after the Kicker fails to hold the new territory, instead falling back toward the gap. Weak traders who bought the gap get shaken out, and the pattern becomes a whipsaw.

These failures are less common when the Kicker appears at a strong technical level. A gap opening at a moving average, a prior support or resistance level, or a round number is more likely to hold than a gap in open air. Volume confirmation also matters: a Kicker on exceptionally high volume is more likely to stick than one on ordinary volume.

Trading the Kicker

An aggressive trader might enter immediately after the second candle closes, betting that the reversal is real and momentum will continue. The entry is at the close of the Kicker candle or just slightly above (for a bullish reversal) or below (for a bearish one).

The stop-loss is placed beyond the gap. For a bullish Kicker, the stop is just below the low of the gap (i.e., below the open of the second candle). For a bearish Kicker, the stop is just above the gap high. This placement respects the possibility of a gap fill; if the price closes back across the gap, the reversal signal is negated.

The initial target is often the prior extreme—the level where the original trend began its most recent leg. In an uptrend that reversed with a bearish Kicker, the target might be the low of the first candle in the pair or a level further down that was touched during the prior downtrend.

More conservative traders wait for a confirmation candle. If the Kicker is followed by another candle that opens on the new side of the gap and closes firmly there, the reversal is confirmed. This extra confirmation reduces whipsaw risk at the cost of entering slightly later and missing the sharpest part of the move.

Volume and overnight action

The Kicker’s most honest expression occurs when the gap is created overnight (or at the market open) on the back of news or a major order flow shift. Intraday Kickers are less reliable because they lack the overnight conviction component. A Kicker that gaps at the 10 a.m. or 3 p.m. mark is less powerful than one that gaps at the open.

Volume on the second candle is also instructive. A Kicker closing on high volume suggests strong conviction and follow-through. A Kicker closing on ordinary or declining volume is less trustworthy and may represent capitulation short-covering rather than true reversal.

Variants and related patterns

The Kicker by volume is a variation where two candles open with similar closes but vastly different volumes. The second candle is smaller in range but much higher in volume, suggesting strength despite the small candle size. This is less dramatic than a gapped Kicker but can signal reversal if the volume spike is extreme.

The Kicker with gap is the textbook version described above. Some traders distinguish between a Kicker (two candles, different colors, gap opening opposite to the first candle’s direction) and related patterns like the Tasuki Gap (continuation) or Upside Gap Two Crows (slower reversal). The Kicker is the cleanest and fastest reversal signal among gapped patterns.

Limitations and context

A Kicker on a 1-minute chart in a choppy market is less meaningful than a Kicker on a daily chart or a weekly chart. The timeframe matters. Higher timeframe Kickers are more likely to mark turning points than intraday noise.

Also, a Kicker alone—without any additional context—should not trigger a trade. Combining it with confluence (support/resistance alignment, moving average position, momentum divergence on other indicators) increases odds. A Kicker appearing at a moving average and a prior swing level, in a market where price has been overbought or oversold, is far more actionable than one in the middle of a range.

Finally, avoid over-trading Kickers. They’re rare, high-conviction patterns. Waiting for one to appear at a quality level, then acting decisively, is more profitable than chasing every two-candle gap reversal that crosses a screen.

See also