Forex Profits with the Kicker Signal

The Kicker Signal is a Japanese candlestick technical analysis pattern. It is used in trading stocks, commodities, or currencies. One can gain substantial Forex profits with the Kicker Signal as it is perhaps the most powerful indicator or a substantial market reversal. The Kicker Signal can occur in up or down markets and when the market has been trading in a flat line. It is a two day signal that is often occasioned by dramatic market news. To gain Forex profits with the Kicker Signal it is necessary to learn trading Forex with candlesticks, the clear and easy to read signals that have been around for centuries.

Technical Trading of Forex Pairs

Forex trading can be confusing for the uninitiated. Prices go up and they go down. Pronouncements by the European Central Bank, US Federal Reserve, or Japanese Central Bank can lead to dramatic market shifts but the shifts are not always in the direction one might anticipate. In order to gain Forex profits with the Kicker Signal and other candlestick signals one needs to learn the signals and seek to recognize them on a Forex price chart.

What is the Kicker Signal?

The Kicker Signal is just two candlesticks. They are of roughly equal length. When the first is black indicating a down day in the market the second is white. Like the Morning Star in Forex trading it predicts an uptrend. When the first is white indicating an up day in the market the second is black. As the Evening Star predicts bear markets so does this aspect of the Kicker Signal. Although the candlesticks are one after the other on the Forex chart they give the appearance of being placed end to end. This is because the market opens at the same price to days in a row. However, the price of the traded currency rises or falls substantially on the first day, gaps back the next morning to erase the gains or losses of the first day and continues in the direction of the correction and closes so that it moves twice the distance of the first day. It is not important what the market has been doing prior to these two candlesticks. What commonly is happening here is that important news has hit the market and prices are responding. One can gain Forex profits with the Kicker Signal if one is aware of its meaning and ready to react.

What Does the Kicker Signal Indicate?

The powerful Kicker Signal tells us that the market is likely to keep going in the direction of the second candlestick of the pair. Gaining Forex profits with the Kicker Signal is more likely the sooner that the trader recognizes that the pattern is happening. This is typically when the second day gaps up or down and erases the gains or losses of the first day. A savvy candlestick trader will recognize the beginning of the signal and will be aware of the news that is shaking the market. He will use both his knowledge of a change in fundamentals and his insight into market sentiment to gain Forex profits with the Kicker Signal. A smart trader will not put all of his capital into the trade too early, however. If the currency gaps back the subsequent day it may be wise to exit any trades and reassess the news and market sentiment and foreign currency rates.