Page 11 of the handbook, two candles
Bullish Kicker
- Signal
- Bullish reversal
- Candles
- 2
- Best found
- After a downtrend, often on a catalyst
What has to be true
- Candle 1 closes red
- Candle 2 gaps up
- Candle 2 closes green with strong buyer presence
The bullish kicker is quite possibly the most powerful reversal pattern to exist. The two candle pattern starts with a red day, followed by a gap up, with strong buyer presence closing the second candle green. This pattern is often associated with some sort of catalyst that causes the abrupt sentiment shift.
The extremely rapid change in sentiment from bearish day 1 to very bullish the next is what gives this pattern its strength. Any short-sellers from the previous day are now trapped, and will have to buy to close their positions, only increasing buying pressure.
This bullish kicker occurred on NVDA on 2/22/2024 due to an earnings catalyst. At this time, NVDA was already in a strong uptrend, but began a small secondary downtrend heading into earnings.
Like mentioned previously for the shooter, bullish kickers at the bottom of a downtrend that is secondary to a larger primary uptrend significantly increase confidence.