Fakey price action setup candlestick pattern – also known as price trap signal, Hikkake pattern, bull trap, bear trap is an important and very effective type of candlestick pattern in price action.

Fakey Price Action Trap Pattern

Fakey is a price trap pattern when the price has just broken out of the insdie bar candlestick pattern. If you do not know the inside bar candlestick pattern, see this article.

The Fakey candlestick pattern is very important because it attracts the attention of the big boys entering the market. Big boys will want to trap traders at breakout price zones, so you will find this pattern working very well.

To better understand this model, please see the illustration below.


Here, you see a bearish fakey candlestick pattern and a bullish fakey candlestick pattern.

Note: Not all fakey price trap signals are the same, there are variations with combinations of familiar price patterns like pinbar or engulfing.

See the picture below for easy understanding:


How to trade with Fakey candlestick pattern

Candlestick pattern cannot be traded alone but needs to be combined with the trend, many Traders ignore this and lose money due to trade price action. According to Nial Fuller's documentation and personal experience, fakey needs to be used in conjunction with support and resistance levels on the chart.

The fakey candlestick pattern is good in that it both gives you a good entry point and tells you where to place a safe stop loss.


In this figure, you see the market trending up and then starting to move sideways. You can find fakey patterns at the support zone. Your stoploss will be placed below the trap candle of the support area (where the red arrow is).

Another example of fakey signal, this time the market is not trending but is moving sideways. You will find a fakey candlestick pattern at a resistance or support level.


Fakey has appeared in flash crashes of financial markets

Fakey candlestick pattern can be said to be the most powerful candlestick pattern in technical analysis. If you observe the news a lot, you will see this candlestick pattern appearing a lot.

A case in point is that in September 1992, George Soros shorted the pound that crashed the Bank of England. Many people only know him as someone who knows how to seize opportunities and trade in the direction of fundamental analysis. However, if you look at the time chart, you will gasp in surprise with the Fakey candlestick pattern.


And most recently, there were several flash crashes that also featured a fakey candlestick pattern.

USDCAD pass this week 

GBPUSD on September 6, Theresa May speaks on Brexit


EURUSD after the FOMC meeting on July 20, 2017


Fakey is a very powerful signal, especially during times of high volatility