Hikkake Pattern
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The Hikkake Pattern (or Hikkake), is a technical analysis pattern used for determining market turning-points and continuations. It is a simple pattern that can be viewed in market price data, using traditional bar charts, or Japanese candlestick charts.
The phrase "Hikkake" is a Japanese verb which means to "trick" or "ensnare". The essence of the pattern can be described as a period of rest in the market, followed by a quick, false move. Some western technical analysts may also refer to the hikkake as an "inside day false breakout" pattern. The pattern, once formed, yields its own set of trading parameters for the time and price of market entry, the dollar risk amount (i.e., where to place protective stops), and the profit target. The pattern is not meant as a stand alone "system" for market speculation, but rather as an ancillary technique to traditional technical and fundamental market analysis methods. The pattern was first discovered by Daniel L. Chesler, CMT, and has been written about in several respected technical analysis journals.
[edit] Articles
- Trading False Moves with the Hikkake Pattern - PDF file
- Quantifying Market Deception with The Hikkake Pattern - PDF file
- Hikkake Pattern examples - HTML
