The Hikkake Pattern (Inside Day False Breakout) Metatrader 5 indicator is a trading strategy that is hinged on false breakouts.
The indicator owes its MQL5 code from the Dan Chesler’s article published in April 2004, Active Trader Magazine “Trading False Moves with the Hikkake Pattern”.
The simple Hikkake pattern is made up of two price bars – two hourly bars, two daily bars, two weekly bars, 2 monthly bars, etc.
The first bar is primarily an inside bar (a bar with a lower high and a higher low than the previous bar).
The second bar in the normal Hikkake pattern must have a higher high and higher low than the preceding (inside) bar for a bearish Hikkake price pattern, or a lower low and a lower high than the preceding (inside) bar for a bullish Hikkake price pattern.
The core of the Hikkake setup is captured in these two bars.
The market just made a break away from an inside bar.
Market participants are poised to go in the direction of the market in line with the breakout.
Howbeit, the true intent of the market is captured when it starts heading in the direction opposite to the initial breakout.
Just like every other pattern in the market, confirmation is needed before final execution.
When using the Hikkake pattern, a false pattern should not be expected except price breaks above the high of the inside bar (for bullish pattern) or below the low of the inside bar (for bearish pattern).
Confirmation must take place within three candles of the Hikkake pattern, else the pattern is overlooked.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart pattern indicator
Customization options: Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: chart pattern
Copy and paste the Minions.Hikkake.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)