Trading the Hikkake Pattern
The Hikkake pattern is a Japanese terminology and refers to 'trick'. It was discovered by Daniel Chesler, CMT and has become a popular trading pattern for traders. The hikkake pattern can be identified most easily on a bar chart as well as on Point and Figure charts. It is purely based on price action and is used as a reversal to the trend as well as a continuation pattern, depending on where it appears on a chart. One of the simplicity of trading the Hikkake pattern is that it takes three price bars to identify the pattern and thus makes for a robust trading strategy. However, trading purely based off the Hikkake pattern isn't profitable in itself. But when combined with existing methods, it can prove to be very valuable.
Understanding the Hikkake Pattern
The Hikkake pattern is made up ...