Here is a simple and clear analysis of a KITE candle pattern with chart explanation for trading (stocks, crypto, forex).
📊
$KITE What is a KITE Candle Pattern?
A Kite candle pattern is a reversal signal in technical analysis.
It shows that the current trend (up or down) may soon change direction.
It is made of 2 main candles:
1️⃣ Strong trend candle (big body)
2️⃣ Small candle or Doji (indecision candle)
This shape looks like a kite — large move + pause.
The small candle shows market confusion or hesitation after strong movement. �
indian stocks Market
📉 KITE Pattern Chart (Visual Example)
Bearish Kite (Uptrend → Downtrend)
Copy code
Price ↑
███████ ← Strong bullish candle
─┼─ ← Small candle / Doji (indecision)
Price likely ↓ after confirmation
Meaning:
Buyers were strong
Suddenly momentum stops
Market may reverse down
📈 Bullish Kite (Downtrend → Uptrend)
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Price ↓
███████ ← Strong bearish candle
─┼─ ← Small candle / Doji (indecision)
Price likely ↑ after confirmation
Meaning:
Sellers were strong
Selling pressure weakens
Buyers may take control
🧠 Market Psychology (Very Important)
The pattern shows trend exhaustion:
Situation
What traders feel
Big candle
Strong buying or selling
Small candle
Confusion, hesitation
After that
Possible trend change
Small candles like Doji represent indecision between buyers and sellers, especially after a strong move. �
Wikipedia
✅ Trading Strategy (Professional Way)
For Bearish Kite
✔ Wait for next candle to close downward
✔ Enter sell after confirmation
✔ Stop loss above small candle high
For Bullish Kite
✔ Wait for next candle to close upward
✔ Enter buy after confirmation
✔ Stop loss below small candle low
⚠️ Important Rules (Most traders ignore this)
Never trade kite pattern alone
Confirm with:
Support / resistance
Volume
RSI / MACD
Works best after strong trend
Candlestick patterns help identify possible price movement but must be used with other indicators. �
Wikipedia
⭐ Simple Summary
✔ Kite pattern = strong move + small pause candle
✔ Shows trend may reverse
✔ Uptrend → bearish signal
✔ Downtrend → bullish signal
✔ Always wait for confirmation candle
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