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’s based on the concept of “false breakouts,” which is typically used by forex reversal traders. Such an approach is efficient during sideways market conditions.

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

Introducing the Hikkake Pattern Forex Indicator

MT4 Forex Indicator Overview

The free download link of the Hikkake Pattern MT4 forex indicator is placed at the end of this post. Once you’re done, your trading chart should look similar to the example below.

The general idea behind that forex indicator is that price makes a false breakout from a rangebound, only to reverse and move in the original direction quickly. This action creates a so-called hikkake pattern on the chart, and this name means a “trap” in Japanese.

As you can see, it consists of two moving average lines, one solid and the second dotted. During an uptrend, a selling opportunity occurs when the price touches or crosses below the dotted line. Conversely, the price crossing above the dotted line indicates a potential buying opportunity. Usually, the profit target is a few candles above or below after crossing the opposite blue line.

An aspect worth paying attention to is the distance between these two lines. The higher the gap, the better. Avoid trading during the very tight alignment of these two.

Settings

There are quite a few variables you can customize to fit your preferences or trading strategy.

How To Trade With The Hikkake Pattern Indicator?

Generally speaking, the signal trigger is based on false breakouts and then an actual reversal. So let’s deep dive into how to use that forex indicator in a few easy steps.

Hikkake Pattern: Buy Signal

• The dotted line is below the solid line
• Price touches or crosses above the dotted line
• The distance between the two lines is big enough
• Open long trade when the above conditions are met
• Set stop loss(SL) a few pips below the most recent market’s low point
• Take minimum profit after crossing the solid line, but often the price still rises for a few candles

Hikkake Pattern: Sell Signal

• The dotted line is below the solid line
• Price touches or crosses above the dotted line
• The distance between the two lines is big enough
• Open short trade when the above conditions are met
• Set stop loss(SL) a few pips above the most recent market’s high point
• Take minimum profit after crossing the solid line, but often the price still falls for a few candles

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

Installation Guide

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

You can open this folder by clicking the menu options, which goes as follows:

File > Open Data Folder > MQL4 > Indicators (paste here).

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

Conclusion

The Hikkake Pattern is one of the most well-known reversal patterns and is worth utilizing in your trading endeavor. It can be applied to any currency pair and time frame, but we suggest using it on intraday charts. We think it’s a good fit for somewhat knowledgeable traders, but after some little training, beginners may succeed too. It would be a good idea to use it in conjunction with some technical analysis of forex indicators defining sideways market conditions like the MACD Flat Trend Detector.

Download the Free Forex Hikkake Pattern MT4 Forex Indicator

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