【Today's Knowledge】Pattern — Hikkake Pattern

1、Professional Definition

🔹（1）Hikkake pattern is a candlestick pattern composed of 5 or 6 candles, used to identify short-term trends, either bullish or bearish;

🔹（2）Main characteristics:

a. It is used to identify short-term trends

b. The Hikake pattern can show both uptrends and downtrends simultaneously

c. This indicates high market volatility

d. At the end of the Hikkake candlestick pattern, a market breakout typically occurs

e. The market breakout can go in two directions (bullish/bearish)

2、How to Identify the Hikkake Candlestick Pattern?

🔹（1）The key to identifying the candlestick pattern lies in observing whether an inside bar appears on the chart, also known as the engulfing candlestick pattern.

🔹（2）Whenever an inside bar pattern appears on the chart, the possibility of a "hikkake" pattern always exists.

🔹（3）Characteristics of the inside bar pattern:

a. Composed of two candlesticks

b. The first candlestick is a bullish candle

c. The second candlestick is a small-bodied bearish candle

d. The first bullish candle engulfs the second bearish candle

e. The appearance of the inside bar pattern suggests that a Hikkake candlestick pattern may occur

f. Currently, we cannot determine the nature of this pattern. This pattern may lead to either positive or negative movements, and the short-term trend could go in any direction. After the inside bar pattern appears, the probability of an uptrend and a downtrend is equal.