Description

ON Trade Hikkake Pattern Indicator for MT4 – A Powerful Tool for Traders

What is the ON Trade Hikkake Pattern Indicator?

The ON Trade Hikkake Pattern is a custom MetaTrader 4 (MT4) indicator designed to detect the Hikkake pattern automatically on trading charts. The Hikkake pattern is a price action setup that signals potential market reversals based on false breakouts of an inside bar.

With this indicator, traders no longer need to manually identify the pattern—it does the work for them by highlighting the Hikkake pattern on the chart with a rectangle around the relevant candlesticks.

How Does the ON Trade Hikkake Pattern Indicator Work?

The indicator studies the last five candles on the chart to determine whether the Hikkake pattern has formed. It follows these key steps:

1. Inside Bar Formation: A candle is entirely within the range of the previous candle, signaling consolidation.
2. False Breakout: The price temporarily breaks above or below the inside bar, misleading traders.
3. Reversal Confirmation: The price moves in the opposite direction, trapping traders who followed the breakout.
4. Rectangle Highlighting: If the pattern is valid, the indicator draws a rectangle around the candles forming the Hikkake pattern, making it easy to spot.

Key Parameter: Pips_Between_H_L

One of the most important settings in this indicator is Pips_Between_H_L, which measures the number of pips between the high and low of the fifth candle in the pattern.

• If Pips_Between_H_L is large, it indicates a strong price movement.
• If Pips_Between_H_L is small, it suggests weaker momentum and a potential consolidation phase.

Why the Hikkake Pattern is Important in Trading?

The Hikkake pattern is widely used by traders because it helps in identifying market manipulation and false breakouts that trap traders in the wrong direction. Many traders get caught when they assume a breakout is genuine, only to see the price reverse. By using this pattern, traders can avoid such traps and enter positions at more favorable prices.

Additionally, this pattern is effective across multiple markets, including:

• Forex: Identifying potential reversals in currency pairs.
• Stocks: Spotting entry and exit points in equities trading.
• Commodities: Detecting price reversals in gold, oil, and other assets.

How to Use the Hikkak Pattern in Trading?

The Hikkak pattern is an effective reversal signal that can be used for both buy and sell trades:

• Buy Signal: If the price falsely breaks below the inside bar and then moves up, it signals a potential upward trend.
• Sell Signal: If the price falsely breaks above the inside bar and then moves down, it suggests a bearish reversal.

Trade Setup Example

1. Confirm the Hikkak patterns on the ON Trade Hikkake Patterns Indicator.
2. Enter a trade when the price moves in the opposite direction of the false breakout.
3. Set stop loss beyond the high/low of the false breakout candle.
4. Take profit based on a 1:2 or 1:3 risk-reward ratio.

Advantages of Using the ON Trade Hikkak Pattern Indicator

1. Accurate Market Reversal Detection: Helps traders avoid false breakouts.
2. Time-Saving: No need to manually identify the Hikkak patterns—the indicator does it for you.
3. Works on All Timeframes: Suitable for scalping, day trading, and swing trading.
4. Customizable Settings: Adjust parameters like Pips_Between_H_L to fit your trading strategy.
5. Improves Trading Confidence: Provides clear trade signals with high accuracy.

Final Thoughts

The ON Trade Hikkak Patterns Indicator for MT4 is an excellent tool for traders who use price action strategies. By automatically detecting the Hikkak patterns, it simplifies trading decisions and helps traders capitalize on false breakout reversals.

Ready to improve your trading accuracy? Download the ON Trade Hikkak Pattern Indicator and start identifying market reversals like a pro! 🚀

 

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Reference Data From Wiki .