【Today’s Knowledge】Pattern — Trap Pattern

1. Professional Definition
🔹 (1) Hikkake trap pattern, a candlestick pattern composed of 5 or 6 candles, is a bullish or bearish pattern used to identify short-term trends;
🔹 (2) Main characteristics are:
a. It is used to identify short-term trends
b. The Hikkake pattern can simultaneously display upward and downward trends
c. This indicates higher market volatility
d. At the end of the Hikkake candlestick pattern, the market usually experiences a breakout
e. Market breakouts can occur in two directions (bullish/bearish)

2. How to identify the Hikkake candlestick pattern?
🔹 (1) The key to recognizing the candlestick pattern is to observe whether an inside bar appears on the chart, also known as a harami candlestick pattern.
🔹 (2) When an inside bar pattern appears on the chart, there is always a possibility of a “hikkake” pattern forming.
🔹 (3) Characteristics of the inside bar pattern:
a. Composed of two candles
b. The first candle is a bullish candle.
c. The second candle is a small-bodied bearish candle.
d. The first bullish candle covers the second bearish candle.
e. The appearance of the inside bar pattern indicates a potential Hikkake candlestick pattern.
f. Currently, we cannot determine the nature of this pattern. It may show both bullish and bearish movements, and the short-term trend could develop in any direction. After the inside bar pattern appears, the probability of an upward or downward trend is equal.