Modified Hikkake Pattern
Categories: Charts
See: Hikkake.
The Hikkake Pattern is a situation that comes up in technical analysis. It can suggest either a reversal or a continuation of a trend (depending on some of the details).
The Modified Hikkake Pattern, developed by Dan Chesler, is a more specific version of the Hikkake. It's like how you can have shirts that are blue and shirts that are teal. The teal ones are still blue...it's just a shade of blue.
A normal Hikkake includes two bars. First there's an inside bar, then a follow-up bar on the next day. The modified version looks at the bar before the inside bar. If the previous bar closes either at the top of its intraday range or the bottom of its intraday range, that situation defines a Modified Hikkake Pattern. A close at the top of the intraday range points to a bearish Hikkake pattern. A finish near the bottom of the intraday range suggests a bullish situation.
