Hikkake Pattern

The hikkake pattern is a pattern one can spot via technical analysis to determine when the market will change trends. Unlike candlestick chart patterns, the hikkake pattern uses a collection of indicators (like market price data, point and figure charts, Japanese candlestick charts, and even traditional bar charts.

The hikkake pattern is actually two patterns: one for when the market is going bearish, and one for when the market is going bullish.

The pattern itself measures time periods of both volatility and resting, resulting in contractions, followed by a quick price change. Unlike other tools out there for analyzing the market, the hikkake pattern isn’t meant to be a be-all, end-all predictor. Rather, it’s a traditional technique in the fundamental market analysis methods toolkit.