the hAndbook of technIcAl AnAlysIs
7.4 Volatility‐Based Breakout Patterns
hikkake pattern: the Failed Breakout reversal entry
The Hikkake pattern is characterized by an entry initiated after an initial failed
breakout of an inside bar. Figure 7.34 is an illustration of a bullish Hikkake pat-
tern where a false breakout inside bar was followed by an upside breakout. In this
pattern, we only take the re‐entry in the opposite direction of the failed breakout.
Similarly, we see a bearish Hikkake pattern with an initial false upside breakout.
The short entry was later initiated once price reversed and violated the low of
the inside bar. The breakout should occur within three bars of the initial failed
breakout. Hikkake means to trap or ensnare.
Figure 7.35 depicts a bullish Hikkake pattern forming a bottom on the daily
chart of the iShares Emerging Market Fund, which is seen coinciding with the
Figure 7.34 Bullish and Bearish Hikkake Breakout Pattern.
Figure 7.35 Bullish Hikkake Pattern on the Daily Chart of iShares Emerging Markets
Fund.
Courtesy of Stockcharts.com
