Hikkake Pattern
The Hikkake Pattern (or Hikkake), is a technical analysis pattern used for determining market turning-points and continuations (also known as trending behavior). 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 methods. The pattern was invented by noted market technician Daniel L. Chesler, CMT, and has been written about in several respected technical analysis journals.
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