The Kicker signal is one of the most powerful signals. It works equally well in either direction. Its importance is magnified when occurring in the overbought or oversold area. This formation is indicative of a dramatic change in investor sentiment. Often this occurs due to some surprise news that hits the market, causing the massive change in sentiment. The candlesticks visually depict the magnitude of the change.
The Bullish Kicker Signal is a two or more candle pattern, and is the opposite of the Bearish Kicker Signal. The first candle opens and moves in the direction of the current down trend. Usually with little or no upper or lower wick. The second candle opens at the same open of the first candle, or is gapped up, and moves in the opposite direction.The price never retraces into the previous day's trading range. The signal usually occurs due to surprise news that affects investor sentiment. Trend is usually irrelevant for the Kicker signal.