Kicking Pattern

The Kicking Pattern is a sophisticated technical indicator that identifies one of the most powerful reversal signals in price action: the Kicker. This pattern consists of two consecutive marubozu candles that gap in the opposite direction of the preceding move, signaling a sudden, violent shift in market sentiment. By automating the identification of these high conviction price gaps, the indicator helps traders pinpoint moments where institutional forces have effectively reset the market equilibrium, providing actionable setups with clearly defined risk and reward parameters.

How to Trade the Kicking Pattern?

Trading the Kicking Pattern revolves around the significance of the gap created between the two marubozu candles. This gap serves as the primary support or resistance zone. When the pattern appears, the indicator projects a "Gap Zone" that tracks how price interacts with this area. If the price remains on the side of the breakout, the trend is considered healthy. If the price closes back inside the gap, the conviction of the move is effectively negated.

You can choose between two primary entry methods:

• Kick Close: This is an aggressive entry that triggers as soon as the second marubozu confirms. It is ideal for catching strong momentum moves where the price is unlikely to look back.
• Gap Retest: This more patient approach waits for the price to pull back into the gap zone after the initial spike. By waiting for the retest, you can potentially secure a better entry price and a tighter stop loss, thereby improving your risk to reward ratio.

The indicator automatically calculates the stop loss based on the far edge of the gap. Because the pattern relies on the gap holding, any close back through this area acts as an automatic signal to exit the trade, minimizing exposure to failing momentum.

Kicking Pattern Settings

Pattern Rules

• Shadow Tolerance %: Determines how much of a wick a candle can have while still being considered a marubozu. Higher values allow for less perfect candles.
• Body Average Length: The number of bars used to calculate the average body size, ensuring that identified candles are significantly larger than recent price action.
• Long Body Multiplier: The required ratio of the current candle body to the average body.
• Gap Rule: Allows you to choose between a strict Range Gap, where the entire second candle is outside the first, or a more flexible Body Gap, where only the bodies must not overlap.

Context Grades

• Require Prior Trend: If enabled, the indicator only highlights kickers that occur after a sustained trend, filtering out noise in consolidation.
• Trend EMA Length: The period for the exponential moving average used to define the prior trend.
• Volume Average Length: The lookback period for checking volume spikes, helping to confirm that the kicker was driven by genuine participation.

Trade Plan

• Entry: Choose between entering at the close of the second bar or waiting for a pullback to the gap zone.
• Retest Window: The number of bars the indicator will wait for a pullback before marking the setup as missed.
• Target (R): Your desired profit target expressed as a multiple of your risk.
• Maximum Hold (Bars): A safety limit that closes the trade if the target is not reached within a specific timeframe.

Frequently Asked Questions

What exactly defines a Kicking Pattern?

How does the gap rule change the signal?

What happens when the gap is filled?