Hikkake Pattern Indicator

Hikkake Pattern Indicator

Hikkake Pattern is a technical indicator that indicates price reversal in trends.

The Hikkake pattern is a technical indicator that can be used to identify reversals in the financial markets. It is based on the concept of “false breaks” and is typically used by day traders and scalpers.

This indicator occurs when a price makes a false break out of a range or trend, only to quickly reverse and move in the opposite direction. This action creates a “hikkake” (Japanese for “hook”) pattern on the chart.

The indicator can be used on any time frame, but is most commonly seen on intraday charts. To trade with the Hikkake pattern, traders will enter into a short position when the price reverses and creates the “hikkake” pattern on the chart.

Hikkake Pattern Indicator BUY / SELL Signals
The indicator is a technical that can be used to generate buy and sell signals. The hikkake pattern is created when price action forms a false breakout, followed by a reversal. The false breakout signals a potential change in direction, while the reversal confirms the change. Although the indicator is considered to be a bullish signal, it can be used in both uptrends and downtrends.

BUY: In an uptrend, the hikkake pattern signals a buying opportunity after a pullback.
SELL: In a downtrend, the hikkake pattern signals a selling opportunity after a rally.

The key to using the hikkake pattern effectively is to wait for confirmation before taking action. This means waiting for the price to close below the initial breakout point in an uptrend, or above the initial breakout point in a downtrend. Once confirmation is received, traders can enter positions in the direction of the trend.

Conclusion
Hikkake is one of the most famous pattern candlesticks useful to identify trend inversions, that’s why this indicator is one of the best additions to your Metatrader.

Have you tried using the Hikkake Pattern in your trading? If so, how has it worked out for you? We’d love to hear about your experiences in the comments below.