L 'Hikkake Pattern and Moving Averages is a method of identifying trend reversal or continuation of the same, depending on its progress. It 'a strategy used to determine the points of reversal of the market and its continuations. The model hikkake was discovered and introduced through a series of articles written by technical analyst Daniel L. Chesler.

Moving averages are used to indicate the trend of a trend and to make this the most accurate indicator available.

There are seven different types of moving averages: simple or arithmetic, exponential, temporal, weighed, triangular, variable, adjusted the volume. The only significant difference between the various types of moving averages is the weight that is assigned to the most recent data. For example,

the simple average is calculated by adding the closing price of the various periods of time considered and dividing the total by the number of periods of time. In this case the weight assigned is equal for all periods. The most popular method of interpreting a moving average is surely to compare the relationship between the closing price of the moving average and the closing price of the same.

The sell signal occurs when the price falls below the value of moving average, while the buy signal occurs when the price goes above the value of moving average.

Another technique that can be applied in our example is called a double crossover and is used in the short term, medium and even in the long term. Typically, this technique we understand that the trend could move upward when the moving average of short - medium term is traversed upward from the average of the longer term. In contrast, however, we would have an indication that the trend is going downward.