Tag: price action trading

Trading the Hikkake Pattern

Trading the Hikkake Pattern

Trading Strategies
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 ...

Support and Resistance for Trade Entries and Exits

Trading Strategies
Support and resistance levels are key levels where it is possible for the price of a currency pair to experience reversals. As such, they should always be considered whenever a trader wished to make trade entries and exits. A price support is a target price at which falling prices may stall or reverse upwards. Usually, the price of the currency asset will attempt to break through this level and will test it several times, each time being rebuffed. The more the support is tested without a break, the stronger the support. A horizontal line drawn across this price target will form a price support. A resistance level is a price level at which rising prices either stall or retreat from. The more that price level is tested and rebuffed, the stronger the resistance. A line drawn across ...