The kicker pattern is perhaps not very well-known among traders. It can be illustrated as:
It means that the second body is above the first one, as well as the first body is bearish and the second one is bullish. Moreover, the pattern should occur at a downtrend.
I backtested the pattern using a similar strategy as for the engulfing bullish candlestick. The only difference is that I enter right after the pattern occurred, i.e. I do not wait for confirmation on the next day. The reason is that the trend has already started and we would lose quite a lot if we decide to wait. A typical trade is shown here:
The results of backtesting in years 2000-2017 for the Russell 3000 stocks are collected in the table below:
|Total net profit||$90242|
|Number of trades||1217|
|Profitable trades [%]||48.48%|
|Average trade [%]||0.81%|
|Number of days held||18|
The results are quite decent, which confirms that the pattern is profitable.