The hikkake pattern, or hikkake, is a technical analysis pattern used for determining market turning-points and continuations. It is a simple pattern that can be observed in market price data, using traditional bar charts, point and figure charts, or Japanese candlestick charts. The pattern does not belong to the collection of traditional candlestick chart patterns.

Though some have referred to the hikkake pattern as an “inside day false breakout” or a “fakey pattern”, these are deviations from the original name given to the pattern by Daniel L. Chesler, CMT and are not popularly used to describe the pattern. For example, the name “hikkake pattern” has been chosen over “inside day false breakout” or “fakey pattern” by the majority of book authors who have covered the subject.

(description from Wikipedia).

// The Hikkake Pattern, by Daniel Chesler, CMT
// The 'Fakey' entry
// coded by Violet
// 28-11-2017
//

// For an explanation of the pattern, consult this webpage:
// http://www.esignallearning.com/education/marketmaster/archive/2012/archive_index.aspx?date=041312
// Also read this interesting report:
// https://oxfordstrat.com/trading-strategies/hikkake-pattern/
//
// Use it for market timing, but always in conjunction with position sizing and a sensible stoploss !
// because like every other technique this one may fail

InsideBar = high[1] < high[2] and low[1] > low[2]
FakeBullBar = low < low[1] and high < high[1]
FakeBearBar = low > low[1] and high > high[1]

// Long Setup
if InsideBar and FakeBullBar then
 HikkakeBull = 1 // flag for a potential bullish setup
 InsideBullBarHigh = high[1] // set the high of the insidebar
 InsideBarNumber = barindex - 1
 HikkakeBarNumber = barindex // signal bar, bar number of completed Hikkake setup
endif
if HikkakeBull then
 WithinTimeLimit = (barindex - HikkakeBarNumber) <= 3 
 if close > InsideBullBarHigh and WithinTimeLimit then
  //setup confirmed if price closes higher then InsideBullBarHigh within 3 bars after pattern completion
  drawarrowup(barindex,low-range/8) coloured(0,255,125)
  drawsegment(InsidebarNumber,InsideBullBarHigh+ticksize,barindex,InsideBullBarHigh+ticksize)
  drawtext("▴",barindex,InsideBullBarHigh-ticksize, dialog,bold,20)
  HikkakeBull = 0 // reset pattern detection flag
 endif
endif

// Short/Sell setup
if InsideBar and FakeBearBar then
 HikkakeBear = 1 // flag for a potential bearish setup
 InsideBearBarLow = low[1] // set the low of the insidebar
 InsideBearBarNumber = barindex - 1
 HikkakeBearBarNumber = barindex // signal bar, bar number of completed Hikkake setup on third bar
endif
if HikkakeBear then
 WithinTimeLimit = (barindex - HikkakeBearBarNumber) <= 3
 if close < InsideBearBarLow and WithinTimeLimit then
 //setup confirmed if price closes lower then InsideBearBarow within 3 bars after pattern completion
 drawarrowdown(barindex,high+range/8) coloured(255,0,0)
 drawsegment(InsideBearBarNumber,InsideBearBarLow-ticksize,barindex,InsideBearBarLow-ticksize)
 drawtext("▾",barindex,InsideBearBarLow - ticksize, dialog,bold,20)
 HikkakeBear = 0 // reset pattern detection flag
 endif
endif

//drawcandle(open, high, low,close)

return