Kicker Signals at Moving Averages

Kicker Signals at Moving Averages

The Kicker signal, the most powerful candlestick signal! As described earlier, the Kicker signal is formed when something dramatic has changed the investor sentiment. The Kicker signal should never be ignored. It has the capability of producing extremely large profits. The news event or announcement, that cre­ates the signal, changes investor sentiment so greatly that the trend will prob­ably move in the new direction for a lengthy period of time.

The Kicker signal does not require the evaluation of the stochastics. How­ever, a Kicker signal, formed at or near major moving averages, increases the significance of the signal. What is the reasoning behind this phenomenon? It could be the added implication that the price is not going to remain at the normal price area, the moving averages.

Additionally, the gapping of the price movement up through a moving aver­age implies that the moving average will not act as resistance. As seen in the Micromuse Inc. chart, a Kicker signal gaps up through the 50-day moving aver­age. This becomes relevant information. Massive buying strength at an impor­tant technical level!

What is the common reaction to a stock price that may have gapped up 10% to 20% in one day? Most investors will shy away after a price move of that magnitude. That is unfortunate! The information conveyed in a Kicker signal, moving through or away from a moving average, will produce powerful re­sults.

Recognize the signal. When you see it, take advantage of it. Technical analysis is the utilization of previous price movements. Candlestick analysis exploits patterns that have produced significant profits in the past. Kicker sig­nals, witnessed at major moving averages, will produce huge profits for your account.