Hikkake means to trap, trick, or ensnare. Dan Chesler discussed this candlestick trading setup in the Active Trader Magazine in April 2004 (“Trading False Moves with the Hikkake pattern”). Primarily, this price pattern seeks to identify inside bar breakouts and profit from their failures. An inside bar is a price bar that is entirely within the […]
Modified Hikkake Price Pattern For Trading Reversals
The Hikkake pattern is one of my favorite price patterns. Although it is a simple pattern, it demonstrates powerful price action concepts. In this tutorial, you’ll learn about a lesser-known variation of the Hikkake: Modified Hikkake Pattern According to Dan Chesler, the Basic Hikkake works for both continuations and reversals. On the other hand, the Modified […]
How To Trade With Inside Days
The Inside Day is an important pattern for price action traders. Even if you do not intend to trade it, you need to understand its significance. Inside Days represent critical points that uncover useful clues about the market. What is an Inside Day? An Inside Day is a two-bar pattern. To identify an Inside Day, […]
Hikkake on SHLD Daily
SHLD Big Picture – Trading Range SHLD is now in a trading range. The resistance area has contained prices well. The support level, together with the resistance level, has defined a clear trading range. Furthermore, this trading range could be nested within a larger trading range as marked by the solid black lines. There were […]
ID/NR4 on FTI Daily
FTI Big Picture FTI is now in a trading range. FTI has been rising until the triple top chart formation. Price just bounced off a key support level. Price made strong moves up and down which indicates a ranging market. FTI Small Picture The more recent price action is bullish. Price rose above the moving […]
Trading MACD with Inside Bar
MACD is a very popular indicator among traders. It is a versatile indicator which tells the market trend, and highlights momentum. It is not surprising that many traders have designed trading strategies using the MACD indicator. The MACD trading strategy we are looking at today combines the MACD indicator and the inside bar pattern by […]
