The hikkake pattern is a price pattern used by technical analysts and traders hoping to identify a short-term move in the market's direction. The pattern has two different setups, one implying a short-term downward movement in price action, and a second setup implying a short-term upward trend in price.
The Hikkake pattern (pronounced Hĭ KAH kay) is a complex bar or candle pattern that begins to move in one direction but reverses quickly and is said to establish a forecast for a move in the opposite direction. This pattern was developed by Daniel L. Chesler, CMT, who published a description of the pattern first in 2003.