Candlestick chart patterns

Back to main page
Bearish Counter-Attack Lines
Bearish Engulfing Pattern
Bearish Harami
Bearish Hikkake Pattern
Bearish Multi-Harami Pattern
Bearish Separating Lines
Bearish Star
Belt hold line (Marubozu)
Belt-Hold line-Yorikiri-Bearish Pattern
Belt-Hold line-Yorikiri-Bullish Pattern
Bullish Counter-Attack Lines
Bullish Engulfing Pattern
Bullish Harami
Bullish Hikkake Pattern
Bullish Kicker Candlestick Pattern
Bullish Multi-Harami Pattern
Bullish Separating Lines
Bullish Star Pattern
Butterfly Doji
Channels
Coiling Inside Bar
Cup and Handle
Dark Cloud Cover Pattern
Doji Pattern
Doji Star Candlestick Pattern
Double Inside Bar
Downward Gap Tasuki
Flags and Pennants
Gravestone Doji
Hammer & Hanging man Pattern
Head and Shoulders and Inverted Head and Shoulders
Inverted Hammer & Shooting Star Pattern
Ladder Bottom
Ladder Top
Long-legged Doji
Mat-Hold Pattern
Mega Bearish Engulfing
Mega Bullish Engulfing
Multi Inside Bar
Negative Bias Candle
Piercing Pattern
Positive Bias Candle
Raindrop
Rickshaw-man Doji
Rounding Bottom
Side-by-side Green lines - Bearish
Side-by-side Green lines - Bullish
The Evening Star
The Falling Three Pattern
The Morning Star
The Rising Three
Three Advancing Soldiers
Three Black Crows Pattern
Three Inside Out Pattern - Bearish
Three Inside Out Pattern - Bullish
Three Line Strike Pattern - Bearish
Three Line Strike Pattern - Bullish
Three Outside Up Pattern - Bearish
Three Outside Up Pattern - Bullish
Three River Bottom Pattern
Trend Angles: 45 Degree Trendline
Trendlines
Triangles
Upside Gap Two Crows
Upward Gap Tasuki
Wedges: Rising and Falling Wedges
Windows

Bearish Hikkake Pattern

The Hikkake pattern, a candlestick pattern with the potential to identify market trend reversals or continuations, was crafted by the astute trader Daniel L. Chesler. First introduced to the trading community in the September 2004 edition of Active Trader Magazine, it marked a significant milestone in technical analysis.

The Hikkake pattern is formed by a sequence of candles indicating a potential trend reversal. The pattern consists of three main components:

  1. Inside Bar: The first part of the pattern begins with an inside bar, a candlestick whose range (high and low) is within the previous candle’s range. This signifies a period of consolidation or indecision in the market.
  2. Fakeout Move: Following the inside bar, the market initially breaks out opposite the preceding trend, creating what appears to be a breakout. This cunningly deceptive move lures traders into believing the trend will continue in the same direction, requiring them to stay vigilant.
  3. Reversal: The third component of the Hikkake pattern is a reversal. The price unexpectedly reverses after the fakeout move, where the market initially breaks out in the opposite direction. It moves back inside the range of the initial inside bar, creating a trap for traders who entered positions based on the fakeout move. This reversal also signals a potential reversal in the trend.

 

The initial trend is upward in a Bearish Hikkake pattern. The inside bar is followed by a bullish candle that breaks above its high. However, instead of continuing upward, the price reverses and closes below its low, indicating a potential reversal to the downside.

Open Demat Account