The HikkakeThe Hikkake pattern is a candlestick pattern occurring after... More pattern is a candlestick pattern occurring after a candle closes inside the range of the preceding candles.
The idea behind it is that the sudden change in price direction might trigger the of other traders.
Bearish Hikkake
After the upward move (1), the candle (2) reaches below the range of the three preceding, which most likely triggers a number of stop loss orders. This additional selling leads to a more distinct downward move.
Bullish Hikkake
After the downward move (1), the candle (2) reaches above the range of the three preceding candles and most likely triggers a number of stop loss orders. This additional buying leads to a more distinct upward movement.
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