High Kick Candle Stick
A High Kick Candlestick is a rare and dramatic two-candle reversal pattern found on price charts in technical analysis. It signals a sudden and powerful shift in market sentiment, often accompanied by a gap between the two candles.
Structure:
- First Candle: A large-bodied candle (either bullish or bearish) that reflects strong momentum in one direction.
- Second Candle: A large-bodied candle in the opposite direction, with a noticeable price gap between the two candles — meaning the second candle opens far above or below the close of the first one.
This forms a sharp reversal — like a “high kick” in martial arts, hence the name.
Key Characteristics:
- Large gaps between the candles.
- High volatility and strong reversal indication.
- Found after extended trends, indicating possible exhaustion or a news-driven shock.
Bullish High Kick:
- First candle: Large bearish candle.
- Second candle: Large bullish candle with an upward gap.
- Interpretation: Bears were in control, but bulls suddenly take over, signaling a potential upside reversal.
Bearish High Kick:
- First candle: Large bullish candle.
- Second candle: Large bearish candle with a downward gap.
- Interpretation: Bulls were dominating, but bears hit back hard, suggesting a potential downtrend.
Trader Insights:
- Look for confirmation (like volume or the next candle) before acting.
- Effective when used with support/resistance zones, RSI, or trendlines.
- Often signals news impact or institutional entry/exit.
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