Many traders use bull and bear traps because it is a trading setup that they can count on to produce positive returns. Kickers are a specific version of a trap. When the trap occurs in the pre or post market, that is what’s known as a kicker. Both bull and bear kickers happen immediately after the open. No surprise, it’s a day trading setup that traders have to be looking for immediately after starting their trading day at hftrading.com.au.
Many traders like to look for kickers because the setup is not complex. Most bull kicker setups consist of two down bars followed by a gap up above the entire prior bar. A major bull kicker has a wide range down bar before the gap up; a minor bull setup has a typical down bar before the gap up. The trader should go long with a small lot and leave a lot of room with the technical stop. Gaps tend to fill in, so this limits risk and allows you to add to the position later. Traders should look to add on a buy setup on 30 minute or 15-minute intervals as the gap fills. Using kickers as one of your day trading strategies has multi-day ramifications. With this in mind, trailing stops are most effective.
For bear kicker trading setups, traders should look for the opposite scenario. Most bear kicker setups have two up bars followed by a gap down below the entire prior bar. Once a gap down, traders should go short with a small lot at the open, with the technical stop rather far away. This is a sell setup that you will add to on the 30 minute or 15 minute time frame as the gap fills. Like the bull kicker setup, this play can have ramifications up to ten days after the kicker, so trailing stops work best.
Bull and bear kickers are day trading strategies that traders can look for at the start of every trading day and it’s a setup that traders can use to look for profits over a number of trading days. If you’re interested in learning more about the nuances of these (or any other) day trading strategies, we encourage you to check out HFTrading learning programs!