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The Bullish Kicking Candlestick (BKC) is supposed to be a very reliable pattern. The BKC pattern consists of two opposite candlesticks bodies – one bearish candlestick and one bullish candlestick - seperated by a gap up which, so the experts say, indicates the beginning of a new, and at times,explosive uptrend.
A "true" BKC pattern is a very rare but highly reliable candlestick pattern made up of marubozu bodies having no or very small upper and lower shadows.
The more "common," and so slightly less reliable, BKC is made up of non-marubozu bodies having longer upper and lower shadows.
It is this "common" BKC pattern that dojispace.com follows each market day and it is these patterns from which I, either fearlessly or foolishly, will be picking from and reporting on.
I, in an act of hope over wisdom, will be working from only the stocks listed on the daily dojispace.com "Bullish Kicking Pattern" universe. That's the easy part. The hard part will be picking the winners.
Today, 7/20/09, there were over two dozen BKCs to choose from and I have not taken a single one. Having pledged to put up or shut up I will now shut up and wait for tommorows BKCs.
Aambo
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Rank: Advanced Member
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How about these 5? 1. AKAM 2. EXM 3. RYAAY 4. SIGM 5. SMBL
dudu attached the following image(s):
Part time trader
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dudu,
All 5 are in uptrends. I'm looking for a BKC that signals a reversal of a downtrend. Look at last weeks action for CRZO and ARUN.
amabo
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It is hard to find stocks like that this week, because most of the stocks went up last week, so they are no longer in a down trend.
Part time trader
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dudu,
You are exactly right. This is a swing trading strategy that requires Job-like patience. Day traders need not apply.
amabo
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dudu, Do you use the CCI scan? I have found that it works quite well in finding stocks that are in a bottoming formation. I further reduce the stocks by other parameters. I like to eliminate stocks where the price is greater than 1.5 book value. I like to see instutional ownership greater then 75%. I also like to see very low debt and cash in the bank. Sometimes I do make an execption as I did with NLY. Just my thoughts. http://stockcharts.com/h-sc/ui?s=NLY&p=D&yr=0&mn=6&dy=0&id=p00699064200
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Let me add this about NLY. I bought it at 15.45 to capture the quarterly dividend of .60, about 16% per year return. Their holdings are insured by the US government.
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7/21 Like yesterday none of the dojispace Bullish Kicker stocks matched my buy criteria. Tommorow is another day.
Best candlestick books:
Steve Nison's Japanese Candlestick Charting Techniques
Steve Bigalow's Profitable Candlestick Trading: Pinpointing Market Opportunities to Maximize Profits
Gregory Morris' Candlestick Charting Explained: Timeless Techniques for Trading Stocks and Futures
Go get them at the public library.
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7/22. WINN has formed a bullish kicking candlestick (BKC) pattern. The last six trading days have been in a steady downward trend. Today, on good earning news,the stock gapped up on the open on 4X the average 3 month volume, and formed a really big reversal of trend candle.
While I would have liked a lower STO & RSI for an entry point this still looks like a good short term trade so I will,taking up my own candlestick challenge, purchase WINN shares on the open tomorrow with a 3% stop loss. As all of my BKC stock will need to be treated eqaully for purposes of comparison I'll always buy an arbitary amount, say $5,000 worth of shares,based on the open with the same 3% downside protection. This will give me about 350 shares of WINN with about $150 at risk. I'll post the exact amounts tomorrow.
Wish me luck.
Amabo
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I was trading WINN last week and made a little profit just before it went down. The trend looks nice, but watch out for a pull back since it rose over 10% today. I will keep an eye on this stock.
In terms of candlestick book, I recommend
Profitable Candlestick Trading: Pinpointing Market Opportunities to Maximize Profits by Stephen W. Bigalow (Author)
in my opinion, this book is easier to understand than steve's book for beginners.
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It seems to me that WINN had filed for BK several years ago. Correct me if I am wrong. They still compete with WMT. Todays earnings guidance was a well timed release by the company to help bolster the stock price. You have to read the disclaimers and their insurance related gains. Any time you see the term (earnings before)or insurance related gains you must be cautious. http://www.jacksonville.com/tu-online/stories/072209/bus_467449453.shtmlhttp://stockcharts.com/h-sc/ui?s=WINN&p=D&yr=0&mn=6&dy=0&id=p00699064200
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They will report earning statement on Aug 25. Still a month away.
Part time trader
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Admin,
The 10% pop in WINN does give me pause but I'm going with the chart pattern nonetheless. If I discover that I have to limit bullish kicker stocks to a smaller rise then 10% it's theroretical money well spent.
I also like the Bigalow book. I used Nison as a primer into candlesticks.
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Xquestor,
You're right to be concerned about the timing of the guidence. My pick is purely on technical terms.
Amabo
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Rank: Advanced Member
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As part of my bullish kicker candlestick challenge I purchased on the open 350 shares of WINN @ $14.26 with a stop loss at $13.83 (3%). Will report back after close.
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Mainfun8,
LEN was a great pick but the chart does not show a bullish kicker pattern.
amabo
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7/23. Up $105(2%)for the Candlestick Challenge. WINN I purchased 350 shares of WINN on the open at $14.26 with a 3% stop loss which just missed taking me out by 2 cents. WINN closed at $14.56 for a gain of $105 (350 x .30) or about 2%. I'm moving the stop loss up to this AM's open of $14.26. I have $105 profit at risk. LCC LCC has formed a bullish kicking candlestick pattern. LCC has been in a steady downward trend since early May. Today, on good earning news,the stock gapped up on the open on almost 2X the average 3 month volume, and formed a really big (12%) reversal of trend candle. I like that WINN broke out over 50 on the STO & RSI. While a 12% one day gain is kind of steep this looks like a good short term trade so I will purchase LCC shares on the open tomorrow with a 3% stop loss. As all of my BKC stock purchases need to be treated eqaully for purposes of comparison I'll always buy an arbitary amount, $5,000 worth of shares, based on the open with the same 3% downside protection. This will give me about 2174 shares of LCC with about $150 at risk. I'll post the exact prices tomorrow AM. Wish me luck. Amabo
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WINN went up only 1.11% while dow is up over 180 points, not a good sign, but it still has potential. I like LCC a lot, it seems to hit a support and a break out from the consolidation area today. I will watch it tomorrow and may buy it if it continues to go up.
Part time trader
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