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How to win big using the Hikkake pattern? – Easy Guide

Hello…How are you?

Well, In this article I am going to teach you one of the most simple but one of the most powerful strategy i.e Hikkake pattern.

What is Hikkake Pattern?

Hikkake is a Japanese term meaning catch, hook. some people also call this V shape pattern.

This pattern was developed by David L.Chalser, a Chartered Market Technician.

Hikkake Pattern is a price pattern used by traders in the hope to identify a short-term move in market direction.

There are basically two types of Hikkake Patterns:

  • Bullish Hikkake Pattern
  • Bearish Hikkake Pattern

Bullish Hikkake Pattern

Bullish Hikkake Pattern is a two-bar pattern where the first bar has a much bigger shadow than the second bar.

That’s why we also call the first candle a mother candle and the second candle a baby candle.

The third candle appears lower than the high of the second candle.

The fourth appears lower than the high of the third candle.

The last candle closing is above the high of the second candle and that’s the best time to go for BUY Trade.

 

Bearish Hikkake Pattern

Similarly, Bullish Hikkake Pattern is a two-bar pattern where the first bar has a much bigger shadow than the second bar.

That’s why we also call the first candle the mother candle and the second candle a baby candle.

The third candle closing appears higher than the second candle.

The fourth and fifth candle closing appears higher than the third candle.

The last candle closing is below the second. and that’s the signal where we should place sell trade.

Example:

 

See, the chart above firstly, to trade with the Hikkake pattern we firstly need to find the Inside bar Pattern.

The Inside bar can be easily identified if The first candle completely overshadows the second one.

Here, The fifth candle is an Inside bar candle as the fourth candle completely overshadows the fifth.

The sixth and seventh candle closing appears higher than the fifth candle.

However, The eight candle closing appears lower than the fifth candle. and that’s the signal where can place SELL Trade

Homework: Check your Knowledge

  1. Which Hikkake Pattern is it?

2. Where you place BUY OR SELL Trade?

Comment your answers below.

Winding up:

So, this is the end of this article. I hope you have found this article, helpful.

This article was all about Hikkake Pattern, Bullish Hikkake Pattern,  Bearish Hikkake Pattern

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