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. The Pioneers Of Technical Analysis
    Trading Strategies

    The Pioneers Of Technical Analysis

comments powered by Disqus
Hot Definitions
  1. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  2. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  3. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  4. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
  5. Floating Exchange Rate

    A country's exchange rate regime where its currency is set by the foreign-exchange market through supply and demand for that ...
  6. Underwriting

    1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments ...
Trading Center