hikkake

#Hikkake Pattern – The Fakeout That Pays Off

Have you ever seen price break out of a range, everyone jumps in... and then it suddenly reverses?
You just witnessed a Hikkake Pattern — a smart trader's best friend when others get trapped.

What Is the Hikkake Pattern?
The word "Hikkake" (ひっかけ) comes from Japanese, meaning "trap" or "trick."
This price action pattern starts as a breakout, but it's false — and when the crowd gets caught, price moves the other way, fast.

It often signals a reversal, but it can also mark trend continuation, depending on the market context.

How It Forms (Step-by-step):
1️⃣ A small inside bar forms — it’s fully contained within the previous candle.
2️⃣ Then price breaks out of the inside bar — looks like a strong move starting.
3️⃣ Suddenly, price reverses and breaks in the opposite direction — this confirms the Hikkake setup.

That’s when you enter — against the crowd.

How to Trade It:
✅ Entry: After the false breakout is confirmed (usually next candle closes back inside the inside bar range).
✅ Stop-loss: Behind the fakeout high or low.
✅ Take-profit:

Target at 2× your risk (SL)
Or use a trailing stop to let profits run if the move is strong

Why It Works:
Because it feeds off emotion. Most traders chase breakouts. When they get stopped out, the move in the opposite direction gains momentum — that’s where you ride the wave.

🔥 Pro Tip:
Combine the Hikkake Pattern with support/resistance or trend direction — that increases accuracy. Don’t trade it blindly on any candle.

#candlestick_patterns #analysis