Hikkake Pattern

AAA

DEFINITION of 'Hikkake Pattern'

A charting pattern used by technical traders which is used in identifying market direction. The Hikkake pattern is identified by its resembelance to an inside bar pattern, where the range of a new point or bar falls outside a previous point or bar. This breakout can be reflect both a bullish or bearish outlook, depending on the direction of the breakout (above or below a previous high or low).

INVESTOPEDIA EXPLAINS 'Hikkake Pattern'

From a Japanese word meaning "hook, catch, ensnare," it was first described by Daniel L. Chesler, CMT. When traders are committing capital to a market only to see it move away from what they expected, what is described in charts is a hikkake pattern, giving the impression the market has hooked or tricked traders into thinking the market was moving in a particular direction.

RELATED TERMS
  1. Double Top And Bottom

    Chart patterns in which the quote for the underlying investment ...
  2. Mat Hold Pattern

    A pattern found in the technical analysis of stocks that ultimately ...
  3. Head And Shoulders Pattern

    A technical analysis term used to describe a chart formation ...
  4. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  5. Triple Top

    A pattern used in technical analysis to predict the reversal ...
  6. Mass Index

    A form of technical analysis that looks at the range between ...
Related Articles
  1. Continuation Patterns: An Introduction
    Charts & Patterns

    Continuation Patterns: An Introduction

  2. How To Use Volume To Improve Your Trading
    Options & Futures

    How To Use Volume To Improve Your Trading

  3. Introduction To Technical Analysis Price ...
    Trading Strategies

    Introduction To Technical Analysis Price ...

  4. Is Natural Gas About to Tank?
    Chart Advisor

    Is Natural Gas About to Tank?

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center