Profit Trading

Kicker Signals 


The Kicker Signal is one of the most powerful Candlestick signals. This is due to the

signal having a gap built into it. In some cases the gap is very obvious. In other cases the

gap is not always recognized by investors.


As described in Mr. Bigalow’s book “Profitable Candlestick Trading”, the Kicker Signal

dramatically illustrates investor sentiment has changed. This is usually the result of a

major news announcement occurring overnight. The result of this signal is highly

predictable. The trend is now going to go in the opposite direction. And with enough

force to make it always a worthwhile trade.


The description of a Kicker Signal is that the first day of the signal opens and then

proceeds to trade in a specific direction for the rest of the day. The second day opens at

the same level as the open of the previous day. It then proceeds to trade in the opposite

direction of the previous day. On charts other that Candlesticks, it is difficult to see that

there was a definite change of investor sentiment. The two different-colored bodies of the

Candles make it clear the opposite camp has taken over between the bulls and the bears.

The gap when the candles open at the same level is not always recognized in this chart

pattern. The fact that the open on the second day is back at the open of the previous day

means it has already moved from where the price closed that day back up to the open.


The bullish signal is very clear in the Cigna Corporation chart, Figure 29. Not only is the

direction completely reversed, it gapped up with enough strength so that there should be

no doubt that the trend is not going to go higher.


This will also elicit the “chasing a stock” response from most investors. If you know what

this type of move represents, you should have no fear of buying at those higher prices.


Figure 29 – Cigna Corporation 


The visual interpretation of the chart is clear. The trend was definitely down. The news

announcement was apparently completely unexpected and very favorable for the

company. Will prices go straight up after a Kicker Signal? Not necessarily, but it is

advisable to sit through whatever waffling may occur after the signal. The signal itself

depicts a strong change in investor sentiment. Sometimes that change of trend may have

to sop up the opposite stock before the trend gets to proceed.


Figure 30 – Gemstar TV Guide Intl. Inc. 



The observant investor can easily locate the Kicker Signal. TC2000 has very easy search

programs that can be formulated and implemented. (See how to subscribe to TCNet on

our website, ) The trader would be well-advised to search

for  Kicker Signal formations every day.


As seen in the Gemstar TV Guide Intl. Inc. chart, Figure 31, the Kicker Signal, although

small, did change the trend direction. As professed by the Japanese about the Doji,

always pay attention when you see it.  The same should be said for the Kicker Signal,

always take notice of this formation.


Note in Figure 32 – ISIL, Intersil Corporation, had a close semblance to a Kicker Signal.

Despite the open not being at the exact identical open, the fact that the price gapped back

up to almost the same opening price was warranted by the strong buying through the

remainder of the day.


Figure 33 – Coca-Cola Corporation 


The Kicker Signal is as effective to show inordinate selling as it does buying. Note in

Figure 33, Coca-Cola, the signal is formed by the gap down from the previous close to

open at that candle’s open and go the other way. Again, this would not be as clearly

defined on a Western Bar chart. The opposite colors and the opposite direction are better

seen on the Candlestick chart.


Kicker Signals do not occur very often. But when they do, they will add great value to

your portfolio. Having the faith that a gap in the opposite direction is not something to be

afraid of but something to be exploited will multiply your earnings many fold. The fact

that a price has already moved 5%, 10%, 15% in the other direction should not be a

reason to refuse to get into a position. The move should be the impetus for getting into

the position. The trend changed and moved dramatically in the other direction for a

reason. Buy the stock. Get rid of the investment psychology that you want to buy the

position if it pulls back to let you in. That is the exact opposite of why you want to get

into a position. Buy the position because you saw that the buyers are in with full force.

You want to be in that run.




Gaps have always played an important part in technical analysis. The movement away

from the previous trading range signifies an extraordinary shift in investor sentiment.

This shift can be more in the same direction as well as a complete reversal of the existing

trend. Most important is that a gap has many ramifications. As illustrated in the book,

gaps identify the force that can start a strong rally, or it can signify that final gasp of

enthusiasm. The Japanese observed these movements over hundreds of years and

accurately identified the results when combined with the signals.


With today’s computer capabilities, it is easy to do searches that specifically track

gapping situations. Investing in these situations alone can make for a high-profit trading

program. Putting the probabilities heavily in our favor, using Candlestick signals to

identify a direction and a gap demonstrating inordinate force, will provide a source of

profitable trades that no investment advisor is capable of doing. Most investors search

years for an advisor, broker, newsletter, or guru that will lead them to consistently

profitable trades. The well-versed Candlestick investor has a constant treasure trove for

generating big profits. These are not hidden secrets. Yet, the combination of these

investment tools have not been utilized by most investors. Having the backup of centuries

of actual participation in this profitable combination takes the guesswork out of

investment decisions.


The Candlestick Forum, distinguishes itself from other

Candlestick sites by enlightening investors to the actual implementation of profitable

Candlestick trading strategies. Our soon to be published “Formulas for Major Signals

Using TC2000” will describe how to develop your own search programs using the

effective TC2000 search software. When able to do your own searches, the formulation

of gap searches will put you in charts that have a strong move capability.


Isn’t that the foremost purpose for your investment plan, finding the best possible places

to put your funds?  Remember, these signals, formations, and philosophy are not the

results of some quick, thrown-together back-tested investment program. The investment

concepts portrayed in this book are the results of hundreds of years of visual observations

confirmed with actual profitable experience. Once you have observed the results of a gap

up discovered by your search, you will lose past thought processes such as “it is not wise

to chase a stock”. A gap up is the indication that a new trend may be starting when it

occurs at the bottom. It also warns the investor when the exhaustion buying is occurring,

showing the end of the trend.


You can exploit profits that the common investor will shy away from. You will find

profitable trades that most investors do not fully understand. Your wealth will be

multiplied by common sense placement of funds, the same opportunities that the rest of

the investment community has been advised to avoid. You have this knowledge. Use it. If

you are a member of the Candlestick Forum, utilize the expertise of the staff.


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