Hikkake Pattern

Hikkake Pattern

The Hikkake Pattern (or Hikkake), is a technical analysis pattern used for determining market turning-points and continuations. It is a simple pattern that can be observed in market price data, using traditional bar charts, or Japanese candlestick charts.

The phrase "Hikkake" is a Japanese verb which means to "trick" or "ensnare." The pattern is comprised of a measurable period of rest and volatility contraction in the market, followed by a relatively brief price move that encourages unsuspecting traders and investors to adopt a false assumption regarding the likely future direction of price. Some technical analysts may also refer to the hikkake pattern as an "inside day false breakout," however this term has never been formally adopted. The pattern, once formed, yields its own set of trading parameters for the time and price of market entry, the dollar risk amount (i.e., where to place protective stops), and the expected profit target. The pattern is not meant as a stand alone "system" for market speculation, but rather as an ancillary technique to traditional technical and fundamental market analysis methods.

Due to its popularity among institutional traders, the hikkake pattern has been adopted for use by [http://www.intstream.com/ INTSTREAM] , the Nordic power trading software company, in their E2 Energy Market Analysis Platform.

Growing interest in the hikkake pattern among traders and investors has also spawned attention from various book authors. See: "Technical Analysis: The Complete Resource for Financial Market Technicians" by Charles D. Kirkpatrick and Julie R. Dahlquist, and "Long/Short Market Dynamics: Trading Strategies for Today's Markets" by Clive M. Corcoran.

The hikkake pattern was first discovered and introduced to the financial community through a series of published articles written by technical analyst [http://www.chesler.us Daniel L. Chesler, CMT ] .

Articles

* [http://www.chesler.us/resources/articles/chesler0404.pdf Trading False Moves with the Hikkake Pattern - PDF file]
* [http://www.chesler.us/resources/articles/TechAnalyst_Nov04.pdf Quantifying Market Deception with The Hikkake Pattern - PDF file]


Wikimedia Foundation. 2010.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • Morning star (candlestick pattern) — Illustration of the morningstar pattern The Morning Star is a pattern seen in a candlestick chart, a type of chart used by stock analysts to describe and predict price movements of a security, derivative, or currency over time. Description The… …   Wikipedia

  • Chart pattern — A chart pattern is a pattern that is formed within a chart when prices are graphed. In stock and commodity markets trading, chart pattern studies play a large role during technical analysis. When data is plotted there is usually a pattern which… …   Wikipedia

  • Technical analysis — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • Double top and double bottom — are reversal chart patterns observed in the technical analysis of financial trading markets of stocks, commodities, currencies, and other assets. Double top Double top confirmation The double top is a frequent price formation at the end of a bull …   Wikipedia

  • Dead cat bounce — For the Irish comedy rock band, see Dead Cat Bounce (comedy band). In economics, a dead cat bounce is a small, brief recovery in the price of a declining stock.[1] Derived from the idea that even a dead cat will bounce if it falls from a great… …   Wikipedia

  • Vortex Indicator — The Vortex Indicator is a technical indicator invented by Etienne Botes and Douglas Siepman to identify the start of a new trend or the continuation of an existing trend within financial markets. It was published in the January 2010 edition of… …   Wikipedia

  • Price channels — Trend channel A price channel is a pair of parallel trend lines that form a chart pattern for a stock or commodity.[1] Channels may be horizontal, ascending or descending. When prices pass through and stay through a trendline representing support …   Wikipedia

  • Cup and handle — The cup and handle formation (also called the cup with handle formation) is a bullish chart pattern that is defined by a chart where a stock drops in value, then rises back up to the original value, then drops a small amount in value, and then… …   Wikipedia

  • Doji — Main article: Candlestick pattern The doji is a commonly found pattern in a candlestick chart of financially traded assets (stocks, bonds, futures, etc). It is characterized by being small in length meaning a small trading range with an opening… …   Wikipedia

  • Moving average — For other uses, see Moving average (disambiguation). In statistics, a moving average, also called rolling average, rolling mean or running average, is a type of finite impulse response filter used to analyze a set of data points by creating a… …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”