Hikkake Pattern Forex Indicator MT4 Hikkake Pattern Forex Indicator MT4

The Hikkake Pattern Forex Indicator for MT4 is a Forex technical analysis indicator used to identify short-term trends and is free. It is based on the concept of "false breakout" and is commonly used by Forex reversal traders. This method is effective in sideways market conditions.

Are you a fan of Forex reversal strategies? If so, let’s take a look and bring some practical Forex trading examples.

Introduction to Hikkake Pattern Forex Indicator

MT4 Forex Indicators Overview

The general idea behind this Forex indicator is that the price mistakenly breaks out of the range, then quickly reverses and moves in the original direction. This action creates a so-called hikkake pattern on the chart, the name means "trap" in Japanese.

As you can see, it consists of two moving averages, one solid and one dotted. In an uptrend, a selling opportunity occurs when price touches or crosses below the dotted line. Conversely, price breaking above the dotted line indicates a potential buying opportunity. Typically, the profit target is a few candles above or below the opposite blue line.

One aspect worth paying attention to is the distance between these two lines. The higher the gap, the better. Avoid trading during periods when these two are very closely aligned.

Settings

There are many variables you can customize to suit your preferences or trading strategy.

How to trade using Hikkake Pattern indicator?

Generally speaking, signal triggers are based on a false breakout followed by an actual reversal. So, let’s dive into how to use this Forex indicator in a few simple steps.

Hikkake Pattern: Buy Signal

• The dashed line is below the solid line
• Price touches or crosses above the dotted line
• The distance between the two lines is large enough
• Open a long trade when the above conditions are met
• Set your stop loss (SL) a few pips below the recent market low
• Minimum profit is taken after crossing the solid line, but usually the price still rises by a few candles

Hikkake Pattern: Sell Signal

• The dashed line is below the solid line
• Price touches or crosses above the dotted line
• The distance between the two lines is large enough
• Open a short trade when the above conditions are met
• Set your stop loss (SL) a few pips above the recent market high
• Minimum profit is taken after crossing the solid line, but usually the price will still drop a few candles

How to set up Hikkake pattern indicator in MetaTrader (MT4)?

Installation Guide

Download the Hikkake Pattern.rar archive at the end of this article, unzip it, then copy and paste the HikkakePattern.ex4 or HikkakePattern.mq4 indicator file into the MQL4 folder of the MT4 trading platform.

You can open this folder by clicking on the menu option as shown below:

File > Open data folder > MQL4 > Indicators (paste here).

Now go to the left side of the MT4 terminal. In Navigator , find the meter name, right-click it and select Attach to the chart .

Conclusion

The Hikkake pattern is one of the most famous reversal patterns worth taking advantage of in your trading. It can be applied to any currency pair and time frame, but we recommend using it on intraday charts. We think it's ideal for knowledgeable traders, but with some simple training, beginners can also be successful. It's a good idea to combine this with some technical analysis of Forex indicators that define sideways market conditions, such as the MACD Flat Trend Detector.

Download Free Forex Hikkake Pattern MT4 Forex Indicator