Each trader approaches the market differently. But no matter how you analyze the market, you need a signal signaling factor to enter. The most commonly chosen factor by traders around the world to find entry points is candlestick patterns.

Why candlestick patterns? Firstly because it contains the buy-and-sell force behind the formation, the decisive up or down, which will give the trader a great hint.

Second, placing orders based on candlestick patterns helps us to determine specifically where the entry-level is, where the stop loss is and where the profit will be taken. From there an effective risk management plan.

Today's article will share you with 2 important candlestick patterns besides Pin bar candles so that you can use them to find the most accurate entry point.

The three patterns are:

1. Hikkake

2. 3-candle reversal pattern

The most effective way to learn is through examples. Therefore, for each pattern, have some concrete examples after stating the rules of the candlestick pattern formation.


Hikkake is a failure inside the bar pattern. Traders entering orders when the price breaks out, the inside bar candle is trapped, this Hikkake formed.

Here's how to recognize a Hikkake and how to enter an order:
  1. Find an Inside Bar candle. This is candle 1. (For those who do not know the Inside Bar candle, please comment below)
  2. The second candle has a lower high and a lower low.
  3. Place a BUY STOP order on top of the Inside Bar candle (tree 1).
  4. Cancel BUY STOP order if not matched after 3 candles.
It is a rule of recognizing and entering orders based on a bullish Hikkake candlestick position. Let's do the opposite of the reduced Hikkake.


This pattern is quite good, easy to detect, and highly effective, using it for intraday trading is too ok.

We will have two cases for this trio of reversal candles, a base case, and an advanced field.

For the underlying cause, the probability of a price reversal is good, which is typical and often seen in the market.

In the up case, the probability of a reversal is better than the baseline because the third candle shows a stronger price push and negates the reciprocal force of the previous two candles. Hence for the advanced case, the trader will have more confidence. However, the advanced pattern is less likely to appear than the basic one.

Let's look at the illustration for easy visualization.

  1. Candle number 1 is a bearish candle
  2. The bottom of PK 2 should be lower than PK 1
  3. The bottom of PK 3 must be higher than the bottom of PK 1 (this is optional).
  4. The closed PK 3 should be higher than the top of PK 1 and 2 with the lift case. In the basic case, kilometer 3 just needs to close higher than kilometer 2.
  5. Place BUY order at the closing price of kilometer 3.
Above is the entry rule for the triple bullish reversal candles. With the decreasing reversal reducer, the reverse analysis is fine. As follows:
  1. Candle number 1 is a bullish candle
  2. The top of PK 2 must be higher than PK 1
  3. The top of PK 3 must be lower than the top of PK 1 (this is optional).
  4. The closed PK 3 should be lower than the bottom of the PK 1 and 2 with the lift case. In the basic case, kilometer 3 just needs to close lower than kilometer 2.
  5. Place a SELL order at the closing price of kilometer 3.

Note that two Hikkake patterns and a trio of reversing candles are most effective when they indicate the same direction as the current market trend or hit hard support resistances or reach both. factor above. You should pay attention to this to make better use of candlestick positions.