Hikkake Pattern: Inside-Bar Failure and Timed Confirmation

Summary

The document describes the Hikkake as a price pattern that can signal a potential reversal or continuation. The included indicator logic first identifies an inside bar, then looks for a following bar that breaks the inside bar's range in one direction. For a bullish setup, it marks a potential signal after a downside break and confirms it if a later close rises above the inside bar's high within three bars. The bearish setup mirrors this sequence: an upside break followed by a close below the inside bar's low within the same time limit.

The code draws arrows and reference levels when the conditions confirm; it does not place trades or specify profit targets, exits, or a complete stop method. The accompanying note advises position sizing and a sensible stop because the pattern can fail. No market, timeframe, backtest, or performance data is supplied, so the pattern should be treated as a rule-based timing concept that requires independent testing and risk controls.

Key ideas

• The setup begins with an inside bar followed by a bar that breaks its range in one direction.
• A bullish signal requires a close above the inside bar's high within three bars after the setup.
• A bearish signal requires a close below the inside bar's low within the same time limit.
• The code marks confirmed signals but does not define a complete trade or exit plan.
• The document recommends position sizing and stop-loss discipline and provides no performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.