Hikkake Pattern
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The Hikkake Pattern 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 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 hikkake pattern was first discovered and introduced to the financial community through a series of published articles written by technical analyst Daniel L. Chesler in 2004.
Ricky Schmidt
February 26, 2007
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