Kicker Pattern: Two-Bar Gap Reversal With Marubozu Bodies

Key Takeaways

• A kicker is two marubozu candles of opposite color separated by a gap on the open of the second bar.
• Bulkowski rates the bullish kicker as a reversal only 53 percent of the time without a trend filter.
• Most beginners label any colored gap a kicker, ignoring the marubozu requirement.
• Real kickers tend to mark news driven reversals and often hold for several sessions.

What It Is

A kicker is a two-candle pattern. The first candle is a marubozu in the direction of the prior trend, meaning a candle with little to no shadow and a body that fills most of the range. The second candle is also a marubozu, but in the opposite direction, and it opens with a gap away from the first candle's close. In the bullish kicker the gap is up, in the bearish kicker the gap is down.

Steve Nison documents the kicker in his work on candlestick patterns. Thomas Bulkowski studies it extensively in his Encyclopedia of Candlestick Charts.

The Intuition

A marubozu shows one side controlled the entire session, open to close. When the next session opens with a gap in the opposite direction and then closes as another full body, the market has reversed conviction completely, not gradually. That is rare without a catalyst.

Most kickers print around scheduled news such as earnings, FDA decisions, or macro releases. They mark a sentiment reset, where the market accepts new information and refuses to give back the move during the second session.

How It Works

Identification rules for the bullish kicker:

1. Candle 1 is a bearish marubozu in line with a prior downtrend.
2. Candle 2 opens above candle 1's open with a gap.
3. Candle 2 is a bullish marubozu.

Identification rules for the bearish kicker:

1. Candle 1 is a bullish marubozu in line with a prior uptrend.
2. Candle 2 opens below candle 1's open with a gap.
3. Candle 2 is a bearish marubozu.

candle_1 = marubozu, trend direction
gap between candle_1 open and candle_2 open, opposite direction
candle_2 = marubozu, opposite color

Bulkowski's testing found bullish kickers reverse 53 percent of the time and bearish kickers 54 percent of the time. The pattern's frequency rank is near the bottom of all candles, meaning real kickers are rare.

Worked Example

A stock has been drifting lower from 50 to 42 over three weeks. Monday it prints a bearish marubozu from 43 to 41, with no upper or lower shadow worth noting. After the close, the company raises guidance.

Tuesday opens at 44, above Monday's open of 43, and rallies to close at 47 with virtually no shadows. Tuesday is a bullish marubozu and it opened with a gap above Monday's open. The bullish kicker is complete.

A trader buying near the Tuesday close at 47 places a stop below the gap fill at 43.50, giving 3.50 of risk per share. The pattern often does not retrace much in the first few sessions, because the catalyst that drove the reversal usually keeps fundamental buyers active.

Common Mistakes

1. Confusing engulfing with kicker. Engulfing patterns share at least one open or close with the prior candle. Kickers require a true gap on the second bar's open.
2. Ignoring the marubozu rule. A pattern with long shadows on either candle is not a kicker. The marubozu shape is essential.
3. Trading without a catalyst. Kickers without news often fade. Look for an earnings date, a Fed event, or a macro release alongside the pattern.
4. Chasing after the second candle. Many kickers run far in the first session. Entering at the close means buying the high. Plan smaller positions or wait for a pullback to the gap edge.
5. Ignoring base rates. Bulkowski's 53 to 54 percent hit rates are close to a coin flip. Use kickers as context for catalyst trades, not as standalone signals.

Frequently Asked Questions

What is the kicker candle pattern in simple terms? It is a two-bar pattern where a strong candle in one direction is followed by an equally strong candle in the opposite direction, with a gap between them. It usually marks a news-driven reversal.

How does the kicker candle pattern affect investment decisions? Traders use it to confirm a fundamental shift, such as a guidance change. The pattern's edge is highest when paired with a known catalyst and a clear prior trend.

What is a real-world example of a kicker pattern? Earnings prints commonly produce kickers. A stock falling into earnings, beating, and gapping up to close at the highs is a textbook bullish kicker.

How can investors use the kicker pattern effectively? Combine the pattern with the news catalyst that produced it. Size positions for the wide range of the second candle, and place stops on the far side of the gap rather than just below the second body.

How is a kicker different from an engulfing pattern? An engulfing pattern shares price levels with the prior candle: the second body wraps the first. A kicker has a gap between the two candles, with no body overlap. Kickers tend to be more event driven.

Sources

1. Bulkowski, T. Bullish Kicking Candle Pattern. https://thepatternsite.com/KickingBull.html
2. Investopedia, Kicker Pattern. https://www.investopedia.com/terms/k/kickerpattern.asp
3. StockCharts ChartSchool, Candlestick Pattern Dictionary. https://chartschool.stockcharts.com/table-of-contents/chart-analysis/candlestick-pattern-dictionary
4. CME Group Education, Candlestick Charting. https://www.cmegroup.com/education/courses/technical-analysis/candlestick-charting.html

Disclaimer

This article is educational content only and is not financial advice. Nothing here is a recommendation to buy, sell, or hold any security. Consult a licensed advisor before making investment decisions.