Bullish Kicking

15 min read

What is the Bullish Kicking? #

The Bullish Kicking is one of the most explosive and dramatic reversal patterns in Japanese candlestick analysis, representing an immediate and decisive shift from bearish to bullish sentiment. This two-candlestick formation is characterized by a powerful gap up that completely separates two opposing marubozu candles, creating what appears to be a literal “kick” higher in price action that often signals the beginning of substantial upward movement.

Unlike most reversal patterns that require specific trend contexts, the Bullish Kicking can appear at any point in a trend – during downtrends, sideways markets, or even as continuation signals in uptrends. This versatility, combined with its extreme rarity, makes each occurrence exceptionally significant. The pattern demonstrates such overwhelming buying force that it literally kicks prices into a new trading range, often triggering cascading momentum effects.

With success rates typically exceeding 80-85% when properly identified, the Bullish Kicking offers traders one of the most reliable signals for immediate and substantial price advances. The pattern’s power lies in its demonstration of complete sentiment reversal occurring virtually instantaneously, often driven by major news events, earnings surprises, or sudden shifts in institutional positioning.

Pattern Structure and Recognition #

The Two-Candle Formation #

First Candle (Pre-Kick Setup): A bearish (black/red) candle, ideally a marubozu or near-marubozu, that opens at or near its high and closes at or near its low. This candle demonstrates complete bearish control during the session, with sellers dominating throughout the entire trading period.

Second Candle (Explosive Kick): A bullish (white/green) candle, also ideally a marubozu or near-marubozu, that gaps up significantly from the first candle’s close and maintains strength throughout the session. This candle should open at or near its low and close at or near its high, demonstrating complete bullish control.

Critical Requirements for Validity #

Significant Gap Up: There must be a clear, substantial gap between the first candle’s high and the second candle’s low, with no price overlap between the two candles
Marubozu Characteristics: Both candles should ideally be marubozu or near-marubozu formations, showing complete control by their respective sides
Opposing Colors: First candle must be bearish (black/red), second candle must be bullish (white/green)
Substantial Size: Both candles should have meaningful real bodies, not small indecisive formations
Gap Integrity: The gap should remain unfilled during the formation and preferably for several sessions afterward
Volume Confirmation: Ideally, the second candle shows expanding volume, confirming the institutional nature of the move

Pattern Quality Indicators #

Gap Size Significance: Larger gaps (typically 2%+ in stocks, proportionally larger in other instruments) create more powerful signals and often lead to greater follow-through.

Marubozu Perfection: The closer both candles are to perfect marubozu formations (opening and closing at extremes), the more powerful the pattern becomes.

Volume Explosion: Exceptional volume on the second candle, particularly if it exceeds 300% of recent averages, indicates institutional participation and enhances reliability.

News Catalyst Alignment: Patterns coinciding with significant positive news, earnings beats, or major announcements often produce the strongest follow-through.

Time of Occurrence: Patterns appearing at market opens (especially after significant overnight news) or during high-volume trading periods tend to be more reliable.

Market Psychology Behind the Pattern #

The Bullish Kicking reveals one of the most dramatic two-phase sentiment transformations possible in financial markets:

Phase 1 (Complete Bearish Dominance): The bearish marubozu first candle represents total seller control, characterized by:

Systematic selling pressure from open to close
No meaningful buying interest at any price level during the session
Bearish sentiment reaching extremes
Technical breakdown or negative news driving continued decline
Short sellers potentially adding to positions seeing apparent momentum

Phase 2 (Explosive Bullish Takeover): The gap up and bullish marubozu second candle demonstrates revolutionary market dynamics:

Overnight news or developments completely change market perception
Gap opening immediately traps all recent sellers in losing positions
Buying pressure is so overwhelming that no meaningful selling emerges
Short covering accelerates rapidly as bears panic
FOMO (fear of missing out) drives additional momentum buying
Institutional money enters aggressively, recognizing fundamental changes
Previous resistance levels become irrelevant as price action “kicks” into new ranges

The pattern’s exceptional power lies in demonstrating that market sentiment can reverse so completely and immediately that previous price levels become entirely abandoned. The gap creates a literal “kick” effect where the market moves decisively into new territory, often triggering algorithmic buying and momentum-following strategies.

Types and Variations #

Perfect Bullish Kicking #

The textbook formation with perfect marubozu candles on both sides and a substantial gap with no overlap. This represents the most reliable and powerful version, though it’s extraordinarily rare.

Near-Marubozu Variation #

A more common version where one or both candles show small shadows but maintain the overall marubozu character. While slightly less ideal, these patterns maintain high reliability when other criteria are met.

News-Driven Kicking #

An exceptionally powerful variant where the gap and reversal coincide with major positive news events (earnings beats, FDA approvals, merger announcements). These often produce the most explosive follow-through.

Overnight Gap Kicking #

Patterns where the gap occurs due to overnight developments, often international news or after-hours announcements. These tend to show strong persistence as they reflect fundamental information changes.

Volume Explosion Variant #

The strongest version occurs when the second candle shows extraordinary volume expansion (500%+ above recent averages), indicating massive institutional participation.

Extended Gap Formation #

Extremely rare instances where the gap is exceptionally large (5%+ in stocks), creating dramatic separation that often leads to sustained momentum moves.

Trading the Bullish Kicking #

Entry Strategies #

Gap Opening Entry: Enter at the market open when the gap becomes apparent, capturing the full momentum of the kicking action. This requires quick recognition and execution but maximizes profit potential.

Early Session Confirmation: Enter during the first hour of trading once it becomes clear that the second candle will maintain its bullish character and the gap will hold.

Marubozu Completion Entry: Enter near the close of the second candle when it becomes apparent that it will complete as a marubozu or near-marubozu, ensuring full pattern confirmation.

Gap Hold Confirmation: Enter only after confirming that the gap holds through the completion of the second candle, providing maximum pattern integrity validation.

Advanced Entry Techniques #

Pre-Market Recognition: In markets with extended hours trading, early recognition of news-driven gaps can provide optimal positioning before regular market hours.

Volume-Triggered Entry: Enter only when the second candle shows exceptional volume expansion, ensuring institutional validation of the reversal.

Breakout Continuation: Enter on any additional gaps or breakouts above the kicking pattern, recognizing that initial kicking action often leads to extended momentum.

Options Strategy Integration: Use call options or call spreads to leverage the explosive potential while limiting downside risk to gap-fill scenarios.

Position Management #

Aggressive Sizing: The pattern’s extreme rarity and high reliability justify above-normal position sizes, within overall portfolio risk management constraints.

Gap Monitoring: Continuously monitor gap integrity, as significant gap fills (typically 50%+ retracement) often indicate pattern failure.

Momentum Riding: Implement strategies to capture extended moves, as kicking patterns often initiate multi-session momentum runs.

News Flow Integration: Stay aware of continuing news flow that might support or threaten the fundamental factors driving the kicking action.

Stop Loss Strategy #

Gap Violation Stops: Place stops below the low of the second candle or at a level that would represent significant gap fill (typically 50% gap retracement).

Previous Support Integration: Use meaningful support levels below the pattern as stop placement, though these may be distant due to the gap.

Time-Based Stops: Exit if the pattern fails to show continued momentum within 2-3 sessions, as delayed follow-through reduces reliability.

News Reversal Stops: Implement immediate exit protocols if news developments reverse or are proven incorrect.

Profit Target Development #

Gap Projection Targets: Project the size of the gap upward from the second candle’s close to estimate minimum momentum targets.

Previous Resistance Bypass: Target resistance levels that were previously significant, as kicking patterns often invalidate normal technical resistance.

Momentum Extension Targets: Use Fibonacci extensions (127.2%, 161.8%, 261.8%) from the gap range to identify potential momentum exhaustion zones.

News-Based Targeting: Adjust targets based on the fundamental significance of any news driving the kicking action.

Enhancing Pattern Reliability #

News and Fundamental Catalyst Analysis #

Earnings Surprise Alignment: Patterns coinciding with significant positive earnings surprises often produce exceptional follow-through as fundamental expectations reset.

FDA Approval Synchronization: In healthcare stocks, kicking patterns aligned with regulatory approvals often lead to sustained multi-month advances.

Merger and Acquisition Catalyst: M&A announcements creating kicking patterns typically show strong persistence until deal completion or failure.

Economic Data Surprises: Macro-economic surprises creating sector-wide kicking patterns often initiate sustained trend changes.

Technical Indicator Confluence #

Momentum Indicator Alignment: While less critical given the pattern’s news-driven nature, RSI and MACD showing bullish characteristics enhance reliability.

Volume Flow Confirmation: Exceptional volume on the kicking candle, particularly if it represents the highest volume in weeks or months, validates institutional participation.

Moving Average Interaction: Patterns that kick above major moving average resistance often show enhanced follow-through as technical barriers are decisively broken.

Previous Resistance Negation: Kicking patterns that gap above significant previous resistance levels often maintain momentum as normal technical constraints are eliminated.

Market Environment Assessment #

Sector Sympathy: Kicking patterns work best when the broader sector or market environment is neutral to positive, allowing individual momentum to persist.

Market Hours Timing: Patterns occurring during high-volume trading periods (market opens, option expirations) often show better follow-through than low-volume periods.

News Cycle Context: Formation during active news cycles when market attention is high often produces better momentum than formation during quiet periods.

Institutional Activity Timing: Patterns coinciding with quarter-end rebalancing or institutional window periods often show enhanced persistence.

Market Context and Environmental Factors #

Optimal Formation Conditions #

Major News Event Catalysts: The pattern achieves maximum effectiveness when driven by genuinely significant news that changes fundamental business conditions or market perceptions.

Surprise Information Context: Most powerful when the driving news represents genuine surprises that weren’t anticipated by market participants.

High Attention Environment: Formation during periods when market attention and media coverage are high often leads to superior follow-through.

Institutional Recognition Timing: Patterns coinciding with periods when institutional investors are actively repositioning often show enhanced momentum.

Risk Factors and Limitations #

News Reversal Risk: The primary risk is that driving news proves incorrect, is reversed, or fails to deliver expected benefits, leading to gap fills and pattern failure.

Gap Fill Vulnerability: All gap-dependent patterns carry inherent risk of gap fills, which can occur rapidly and dramatically in volatile markets.

Market Override Risk: Extreme market conditions or sector-wide collapses can overwhelm individual kicking patterns regardless of their news catalysts.

Liquidity Considerations: In thinly traded stocks, gaps may reflect liquidity constraints rather than genuine sentiment shifts, reducing pattern reliability.

Advanced Pattern Analysis #

Gap Behavior Analysis #

Gap Classification: Understanding whether the gap represents a breakaway, runaway, or news-driven gap significantly impacts expectations for persistence and follow-through.

Gap Persistence Patterns: Historical analysis of how long gaps remain unfilled in similar securities provides guidance for holding period expectations.

Volume-Gap Correlation: High-volume gaps with continuing high volume typically show better persistence than low-volume gaps.

Multiple Gap Potential: Recognition that successful kicking patterns often lead to additional gaps in the same direction as momentum builds.

News Impact Assessment #

Information Significance: Evaluation of whether driving news represents temporary or permanent changes to business fundamentals affects target and holding period decisions.

Market Reaction Proportionality: Assessment of whether the gap size is proportionate to the news significance helps evaluate pattern sustainability.

Follow-Up Information: Monitoring for additional news or information that might support or contradict the initial catalyst driving the pattern.

Sector Contagion Potential: Recognition of whether the driving news might create sympathy moves in related stocks or sectors.

Institutional Behavior Recognition #

Block Trading Activity: Large institutional trades during or immediately after pattern formation often indicate professional recognition of the opportunity.

Options Flow Analysis: Unusual call option activity, particularly large institutional trades, supports the bullish thesis and pattern persistence.

Research Coverage Changes: Analyst upgrades, price target increases, or initiation of coverage following kicking patterns often support sustained momentum.

Insider Activity: Legal insider buying coinciding with or following kicking patterns provides additional fundamental validation.

Common Mistakes and Prevention #

Pattern Recognition Errors #

Incomplete Gap Requirements: Accepting patterns with minimal gaps or price overlap significantly reduces reliability and should be strictly avoided.

Marubozu Quality Compromise: Using patterns where neither candle shows strong marubozu characteristics reduces the pattern’s significance and power.

Size Inadequacy: Accepting patterns with small candle bodies that don’t demonstrate meaningful conviction from either buyers or sellers.

News Context Ignorance: Trading kicking patterns without understanding the fundamental catalysts driving the gap action.

Trading Execution Mistakes #

Entry Timing Errors: Entering too late after substantial follow-through has already occurred, or too early before pattern confirmation.

Gap Fill Panic: Exiting immediately when gaps begin to retrace without considering whether the overall pattern thesis remains intact.

Position Size Inadequacy: Using normal position sizes for this extremely rare and reliable pattern, missing opportunities for optimal returns.

News Flow Neglect: Failing to monitor continuing news developments that might affect the sustainability of the driving catalyst.

Risk Management Failures #

Gap Risk Underestimation: Not understanding the unique risks associated with gap-dependent patterns and their potential for rapid reversals.

News Dependency Oversight: Failing to recognize that news-driven patterns carry specific risks related to information accuracy and market interpretation.

Momentum Expectations: Not adjusting trading strategies to account for the potential explosive nature of successful kicking patterns.

Market Context Ignorance: Trading patterns without considering broader market conditions that might affect individual momentum sustainability.

Sector-Specific Applications #

Healthcare/Biotechnology #

Kicking patterns in biotech stocks often coincide with FDA approvals, clinical trial results, or partnership announcements, frequently producing the most dramatic and sustained moves.

Technology Stocks #

Tech sector kicking patterns often align with earnings surprises, product launches, or major contract wins, requiring attention to product cycles and competitive dynamics.

Financial Services #

Banking and financial kicking patterns frequently coincide with regulatory developments, merger announcements, or significant economic policy changes.

Small Cap and Speculative Stocks #

The pattern can be exceptionally powerful in smaller companies where news flow creates more dramatic sentiment shifts and institutional attention changes.

Commodity and Energy Stocks #

Resource sector kicking patterns often align with commodity price spikes, geopolitical developments, or major discovery announcements.

Performance Optimization Framework #

Pattern Quality Scoring System #

Gap Integrity (25% weight):

Gap size relative to normal trading ranges
Complete separation with no price overlap
Gap persistence through pattern completion
Volume characteristics during gap formation

Marubozu Quality (25% weight):

Perfection of marubozu characteristics on both candles
Absence of meaningful shadows or wicks
Demonstration of complete session control
Candle size and conviction evidence

News Catalyst Strength (20% weight):

Significance of driving fundamental information
Market surprise element and timing
Potential for sustained impact
Information credibility and source quality

Volume Confirmation (15% weight):

Volume expansion on kicking candle
Institutional participation evidence
Relative volume compared to historical patterns
Sustained volume interest post-formation

Market Environment (15% weight):

Sector and market conditions
Timing relative to institutional activity periods
Overall market attention and participation
Competing news or market factors

Position Sizing Framework #

Base Calculation: Start with 3-4x normal reversal pattern position size due to extreme rarity and news-driven reliability Quality Multiplier: Increase additional 50-100% for perfect formations with major news catalysts Risk Adjustment: Reduce only if gap size creates excessive single-position risk relative to portfolio News Significance: Increase for transformational news, decrease for temporary or questionable catalysts

Quick Reference Guide #

Pattern Validation Checklist #

[ ] Two consecutive candles of opposite colors (black then white)
[ ] Significant gap up with no price overlap between candles
[ ] Both candles ideally marubozu or near-marubozu
[ ] Substantial candle sizes showing conviction
[ ] Volume expansion on second (bullish) candle
[ ] News catalyst or fundamental driver identified
[ ] Gap maintains integrity through pattern completion
[ ] Appropriate market environment for momentum
[ ] Sector conditions supportive of individual moves
[ ] No immediate major resistance overhead

Trading Decision Matrix #

Exceptional Setup (Maximum Position Size):

Perfect marubozu candles with large gap
Major positive news catalyst (earnings, FDA approval, M&A)
Exceptional volume expansion (500%+ above average)
Formation during high-attention market periods
Supportive sector and market environment

High Quality Setup (Above-Normal Position Size):

Clean gap with good marubozu characteristics
Meaningful news catalyst or fundamental driver
Strong volume confirmation (200%+ above average)
Good market timing and attention
Neutral to positive broader market conditions

Moderate Quality Setup (Careful Evaluation):

Acceptable gap and candle formation
Limited or unclear news catalyst
Some volume confirmation present
Uncertain market environment

Avoid Trading:

Minimal gap or price overlap present
Poor marubozu characteristics
No identifiable news or fundamental catalyst
Declining or insufficient volume
Hostile market environment

Risk Management Protocol #

Entry Rules:

Enter only on confirmed gap with no overlap
Verify news catalyst and assess significance
Use larger position size appropriate to rarity
Set alerts for gap fill monitoring

Exit Rules:

Immediate exit if gap fills >75%
Exit if driving news proves incorrect
Protect profits aggressively after initial momentum
Use trailing stops for extended momentum capture

Position Management:

Monitor news flow developments continuously
Adjust position size based on momentum persistence
Scale out at major resistance levels
Maintain core position for news-driven trends

Emergency Protocols #

Gap Fill Response: Predetermined exit strategy when gaps begin filling significantly News Reversal: Immediate exit protocols when driving news is contradicted or reversed Market Crash: Protection procedures for extreme market events that override individual patterns Liquidity Management: Ensure adequate liquidity for rapid position adjustments

Conclusion #

The Bullish Kicking represents one of the most explosive and immediately profitable patterns in technical analysis, offering traders access to the dramatic momentum that occurs when market sentiment reverses instantaneously. Its extreme rarity – appearing perhaps once or twice per year in actively traded instruments – makes each authentic occurrence a potentially exceptional trading opportunity when properly recognized and executed.

The pattern’s extraordinary power lies in its demonstration of complete and immediate sentiment reversal, typically driven by significant news or fundamental developments that literally “kick” prices into new trading ranges. The gap formation creates an immediate trap for previous sellers while attracting momentum buyers, often initiating cascading effects that can produce substantial and sustained price advances.

Success with the Bullish Kicking requires exceptional speed in pattern recognition, deep understanding of news impact and market psychology, and the courage to take aggressive positions when authentic formations appear. The pattern’s news-driven nature means that fundamental analysis becomes as important as technical pattern recognition, requiring traders to quickly assess the significance and sustainability of driving catalysts.

The kicking action – represented by the gap that literally separates the bearish past from the bullish future – serves as one of the most visually dramatic representations of market sentiment change available in technical analysis. When prices gap so significantly that previous levels become irrelevant, it often signals the beginning of new trend phases that can provide exceptional returns for those quick enough to recognize and trade the initial momentum.

For traders who master the nuances of gap behavior, news impact assessment, and momentum psychology, the Bullish Kicking can provide access to some of the most profitable trading opportunities available. However, its rarity and news-dependent nature require patience, preparation, and the ability to act decisively when these extraordinary setups appear.

Key Takeaway: The Bullish Kicking offers the most explosive and immediately profitable reversal signals when perfect gap formation combines with significant news catalysts to create dramatic sentiment shifts. Focus exclusively on formations with clean gaps, strong marubozu characteristics, and meaningful fundamental drivers. Given its extreme rarity and news-driven reliability, this pattern justifies maximum attention, aggressive position sizing, and extended profit expectations when authentic formations appear. The literal “kicking” of prices into new ranges represents one of the most powerful technical signatures for capturing immediate and substantial momentum moves.

High Reliability, Trend Reversal Detection