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Thomas Bulkowski’s successful investment activities allowed him to retire at age 36. He is an internationally known author and trader with 30+ years of stock market experience and widely regarded as a leading expert on chart patterns. He may be reached at

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Bulkowski's Bearish Kicking

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Market
Industrials (^DJI):
Transports (^DJT):
Utilities (^DJU):
Nasdaq (^IXIC):
S&P500 (^GSPC):
As of 01/18/2017
19,805 -22.05 -0.1%
9,141 41.29 0.5%
664 -0.93 -0.1%
5,556 16.92 0.3%
2,272 4.00 0.2%
YTD
0.2%
1.1%
0.6%
3.2%
1.5%
Tom's Targets    Overview: 01/18/2017
19,250 or 20,250 by 02/01/2017
8,800 or 9,500 by 02/01/2017
685 or 630 by 02/01/2017
5,700 or 5,400 by 02/01/2017
2,200 or 2,350 by 02/01/2017
Indus strength: None YTD
Mutt Losers: None YTD
Mutt Winners: None YTD

Written by and copyright © 2005-2017 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.

In my book, Encyclopedia of Candlestick ChartsEncyclopedia of Candlestick Charts book., pictured on the right, I explore the entire range of candlestick patterns from abandoned babies to windows (not exactly A to Z, but you get the idea), in both bull and bear markets, using almost 5 million candle lines in the tests.

The book takes an in-depth look at 103 candlestick patterns and reports on behavior and rank (3 types: reversal rate, frequency, and overall performance), identification guidelines, performance statistics (tables of general statistics, height, and volume), trading tactics (tables of statistics on reversal rates and performance indicators), and wraps each chapter with a sample trade. I share a sliver of that information below. If you like what you read here, then you will love the book. Help support this website and buy a copy by clicking on the above link.

The bearish kicking candlestick is an unusual name for a candle pattern. I guess I can see the kicking part of the candle, with the black candle being kicked lower (gapping below the first day), while the "bearish" adjective is less a bear kicking the candle than it is representative of the tone of the pattern.

The bearish kicking acts as a bearish reversal both in theory and in the marketplace, according to my research. However, it is a bearish reversal just 54% of the time. I consider that "near random." Since this pattern has a frequency rank of 102 out of 103 candles, it is very rare, indeed. I uncovered 116 bearish kicking candles out of over 4.7 million candle lines. That scarcity of candles may be why this one does so poorly, with a performance rank of 102.

Important Results for Bearish Kicking

Theoretical performance: Bearish reversal
Tested performance: Bearish reversal 54% of the time
Frequency rank: 102
Overall performance rank: 102
Best percentage meeting price target: 51% (bull market, down breakout)
Best average move in 10 days: 3.90% (bull market, up breakout)
Best 10-day performance rank: 35 (bull market, up breakout)

All ranks are out of 103 candlestick patterns with the top performer ranking 1. "Best" means the highest rated of the four combinations of bull/bear market, up/down breakouts.

The above numbers are based on hundreds of perfect trades. See the glossary for definitions.

The ideal bearish kicking candlestick
Bearish Kicking
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Bearish Kicking Discussion

The bearish kicking candlestick pattern is rare because it is composed of two marubozu candles, with a gap separating them. Unless the stock is thinly traded, you may find only a handful in your lifetime.

Performance is lousy. It acts as a bearish reversal just 54% of the time, so that is near random. The best move 10 days after the breakout is a rise of just 3.90%. A good move would be a climb of 6% or more. However, the rise allows the pattern to beat many of the other candlestick patterns because the kicking ranks 35, where 1 is best out of 103 candle types. Given that you may not see these candles, and when you do, performance is poor, I would not spend much time studying them.

Bearish Kicking Identification Guidelines

CharacteristicDiscussion
Number of candle linesTwo.
Price trend leading to the patternNone required.
ConfigurationThe first days is a white marubozu candle followed by a black marubozu. Between the two candles must be a gap.
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Three Trading Tidbits for Bearish Kicking

If you want a few bones from my Encyclopedia of candlestick charts book, here are three to chew on. The pages refer to the book where the tips appear.

  1. The bearish kicking candle breaks out downward most often -- page 449.
  2. Select tall candles for the best performance -- page 447.
  3. Volume gives performance clues -- page 448.

The bearish kicking candlestick on the daily scale

Bearish Kicking Example

Circled in red, the chart shows a bearish kicking candlestick pattern on the daily scale. The first candle is a white marubozu pattern. That is a white candle with no shadows. The following day, price gaps lower forming a black marubozu. That is a black candle with no shadows.

In this example, price rises in the two weeks leading to the start of the bearish kicking pattern and then drops. The breakout is downward when price closes below the bottom of the kicking candle pattern. Since price is trending upward leading to the bearish kicking candle and breaks out downward, this pattern acts as a bearish reversal of the short-term up trend.

-- Thomas Bulkowski

 

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Written by and copyright © 2005-2017 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Don't do what I do, but do do what I don't do.