Hikkake Pattern: A False Breakout Signal
What is the Hikkake Pattern?
The Hikkake is a multi-candle pattern that helps traders identify false breakouts and potential reversals.
Formation – Inside Bar Setup
The pattern begins with an inside bar, where the price range is contained within the previous candle.
False Breakout Move
Price breaks out of the inside bar range but quickly reverses direction, trapping traders.
What Does It Indicate?
The pattern highlights a stronger trap, often leading to a sharper move in the opposite direction.
Confirmation & Volume
Traders wait for price to break the opposite range decisively, while higher volume strengthens the signal.
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