Hikkake Pattern (Intraday False Breakout) - MetaTrader 5 Script - MT4/MT5 Resources

The Hikkake Pattern (Intraday False Breakout) indicator is a trading strategy based on false breakouts. Translated into MQL5 code, taken from Dan Chesler's article "Trading False Moves with the Hikkake Pattern" published in Active Trader magazine in April 2004.

The basic Hikkake pattern consists of two price bars - two hourly bars, two daily bars, two weekly bars, etc. The first bar in this pattern is an inside bar, which is simply a bar with a lower high and a higher low than the previous bar. The second bar in the pattern must have a higher high and a higher low than the previous (inside) bar for a bearish Hikkake setup, or a lower low and a lower high than the previous (inside) bar for a bullish Hikkake setup.

The essence of the concept of form is captured in these two columns. The market just broke out from the inside bar. Traders are prepared to follow the market in the direction of a breakout.

Yet just as athletes take well-timed staccato steps to throw off their opponents, so do markets. It is only when the market begins to move in the opposite direction from the initial breakout that its true intentions become clear. As with all patterns, it's important to wait for signs of validation before taking action.

For the Hikkake pattern, a false move should not be expected unless the price breaks above the inside bar's high (for a bullish setup) or falls below the inside bar's low (for a bearish setup). Verification must occur within three bars of the Hikkake pattern, otherwise the pattern will be ignored.

Complete Dan Chesler article: Click here

We developed this indicator from scratch based on Dan's theory.

Hope this metric is useful to the community!

Please feel free to post bugs, comments, and tips on what types of markets, stocks, and time frames this indicator performs well on.

Attachment download

📎 minions.hikkake.mq5 (15.33 KB)

Source: MQL5 #21137