Chesler's hikkake (inside-day false breakout) switch

How the play works

1. Setup: an inside day (a lower high and a higher low than the day before), then a day with a lower high and a lower low than the inside day (bullish) or a higher high and a higher low (bearish).
2. In at the close if, within 3 sessions after a bullish setup, a close is above the inside day's high. The stop is the lowest low of the pattern.
3. Out at the close if a close falls below that stop, or if a bearish setup is confirmed by a close below the inside day's low within 3 sessions.

Where the rules come from

• Chesler, 'Trading False Moves with the Hikkake Pattern', Active Trader (April 2004), PDF
• Wikipedia: Hikkake pattern