THE HIKAKKE PATTERN FOREX TUTORIAL BY MUFTAU ELETU
THE HIKAKKE PATTERN
“THE HIKAKKE PATTERN HAPPENS AFTER A FAILED INSIDE BAR BREAKOUT“
- What is an inside bar breakout?
The inside bar is a two bar candlestick pattern, which indicates price consolidation. In order to confirm this pattern, you need to see a candle on the chart, which is fully contained within the previous bar. In this manner, the inside bar candle should have a higher low and a lower high than the previous candle on the chart.
STOP LOSS IS PLACED AWAY FROM THE WICK OF THE INSIDE BAR, AND THE PATTERN IS COMPLETE AFTER THE NEXT CANDLE CLOSES ABOVE/BELOW THE HIGH/LOW OF THE INSIDE BAR.
The Inside bar is a Pattern on its Own, while the Hikkake is a Failed Inside bar. Hence when the inside bar pattern fails, it’s a signal on its own.
- The Hikakke pattern occurs when the next candle after the inside bar pattern engulfs the Inside bar range towards the opposite direction. Confirming a failed inside the bar.
From the picture above, you would have bought on that break of the green candle (inside bar pattern) In which case, your stop loss would have been taken out.
Now as the Red (Bearish candle) breaks to the other side of the SIDEBAR range, that gives us a sell signal (confirming the Hikkake Pattern). (from the image above).
Now your new Stop-loss will be above with Fakey inside bar range.
P.S- ALWAYS TRADE THIS PATTERNS (INSIDE BAR, HIKAKKE PATTERN) WITH A STOP LOSS.
HOPE YOU LEARNT SOMETHING! HAVE A GOOD ONE TRADERS!
For more information call (233)302906626 /501471103
or send a mail to firstname.lastname@example.org