What is the kicker pattern?
The Kicker formula is a strategy that is sometimes used to projection the move in the movement of the asset price. The formula is trying to accurately predict when the trend of ascending or declining trend in this price movement is going to, which allows investors to structure orders for purchase or sale that will lead to the highest level of benefits from this price movement. Kicker formula, sometimes referred to as a two -color candlestick formula, can help understand sudden conversion and use this knowledge to protect the interests of investors.
Kicker identification is not always the easiest approach to investors or even observers on the market. Since this process is related to the identification of the conversion of the trend that quickly occurs with a small to any preliminary warning, careful attention is necessary for market indicators, if the investor is to determine the impending reversal of the trend. Since it seems that reversal appears without real warning, sometimes it creates a situation in the wterge of investors perceives it as a short -term change that bude quickly remedied, with a price more or less after the previous trend. Those who identify the Kicker formula and read it precisely do not waste your time to present orders for purchase or selling on whether the pattern reveals that the price is rising or declining.
Read a number of benefits exactly. If the general trend with the price of assets has been declining for some time, sudden conversion would mean that the price in a short period of time increases significantly. This provides a chance for the investor to buy low, keep the asset during an ascending trend, then sell the asset just before the price level and begins to reduce again. Meanwhile, the investor has a significant profit from the ownership of the asset.
When the Kicker Indicates formula that the price of the asset is about to stop moving up and experience a serious decline, the investor quickly moves to sell this asset while still showing some ascending movement. This not only protects revenues already generated from asset but tIf it prevents the possibilities to keep any losses as soon as the price begins to fall. From this point of view, recognizing the developing kicker pattern can go a long way to maintain the value of the investment portfolio.