The bearish kicker is a two-candle pattern that starts with a large bullish candlestick higher (white or green depending on the charting platform) then a second large bearish candle that gaps lower in price and keeps going to the downside. The bearish candle should have a flat bottom or tiny wick with almost no movement back into the price gap.
The bearish kicker candlestick pattern doesn’t have to form after a large downtrend or uptrend in price but occurring as a reversal signal in an overbought uptrend can create a better risk/reward ratio when it shows a reversal on a chart near high prices. It is a valid bearish signal whether the current chart is in an uptrend, downtrend, or going sideways.
This pattern is called a kicker because the price action resembles someone kicking something into a hole. This candle formation shows a bearish sentiment with no buyers inside the gap down in price action or as the candle continues to move lower. This candle is a gap down pattern in technical analysis and is one of the most bearish candlestick chart patterns showing momentum to the downside with sellers both from long positions being exited and possible short sellers coming in to push prices lower.
This pattern is usually created be a negative news event that causes the next candle to price the new information into the chart suddenly that confirms the current direction on a chart is now down.
The bearish kicker can happen during a price range on a chart signaling a break to the downside. When it happens during an upswing or uptrend in price action it is a reversal signal. When it occurs during an existing downtrend in price it is a continuation pattern.
The bearish kicker is a momentum signal to the downside regardless of the current chart pattern.
A bearish kicker candlestick pattern can signal it is time to exit a long position at the end of the bearish candle that is the second candle in the pattern. It can also be signal to short at the end of the bearish candle with a stop loss set above the high of the bearish candle.