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Creator of the hikkake pattern

Daniel L. Chesler

Daniel L. Chesler, CMT, is a registered Commodity Trading Advisor and former trader and price-risk manager for the Louis Dreyfus Group who runs Chesler Analytics, a technical research firm for energy traders in Wellington, Florida. He introduced the hikkake pattern in a series of articles in 2004, including in Technical Analysis of Stocks & Commodities and Active Trader.

What they argue

  • False breakouts from an inside bar trap traders, and the reversal that follows can be traded.
  • A hikkake must be confirmed within three bars, or the pattern is ignored.

Sources

Chesler Analytics: Who we areWikipedia: Hikkake patternChesler, 'Trading False Moves with the Hikkake Pattern', Active Trader (April 2004), PDF

Summaries are Be The Puck's paraphrase of public material. Be The Puck has no affiliation with the people listed.

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

Rule and full record

Candles & chart patterns · daily

When a stock breaks down out of an inside day and then reverses back above the inside day's high within 3 days, buy the reversal that traps the sellers.

Calls right35%29,871 closed calls on 377 stocks.
Beat buy and hold (Sharpe)67 of 375On raw return: 57 of 375.
In right now101 of 377As of the Oct 13, 2026 close.

Best risk-adjusted results against buy and hold:

NAMMOUTLSPDINAAUCOUTAPPOUTRKLBINKELINBTCOUTLACOUTIAUOUTLIFOUTLUNINGPROOUTAll 377 stocks →

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