Define the three-bar setup before looking for failure
Call the reference bar M, the inside bar I and the immediately following breakout bar B. H and L mean each bar's high and low. Dan Chesler's original April 2004 article describes the basic Hikkake using I and B, with M needed to establish containment. Candle color and body size do not determine the basic setup.
- Equality fails the strict comparisons: an inside high equal to the reference high is not inside under these rules, and touching the trigger does not cross it.
- A bar breaking both sides of I fails the breakout-bar definition. The directional high and low requirements prevent treating an outside bar as a basic Hikkake candidate.
- The failed move is the initial breakout direction. A bullish Hikkake can occur during an existing uptrend or a decline; it is not inherently a reversal of the larger trend.
- Modified Hikkake adds restrictions before the inside bar. This page covers the basic pattern and does not silently apply those additional filters.
| Stage | Bullish candidate | Bearish candidate |
|---|---|---|
| Inside bar I | HI < HM and LI > LM | HI < HM and LI > LM |
| Breakout bar B | HB < HI and LB < LI | HB > HI and LB > LI |
| Saved trigger | Inside high HI | Inside low LI |
| Verification on B+1, B+2 or B+3 | A high strictly above HI | A low strictly below LI |
| No verification by B+3 | Expire the candidate | Expire the candidate |