Tasuki Gap candlestick pattern

The Tasuki Gap is a candlestick pattern consisting of three candles and is considered a continuation pattern. There are 2 variations of this pattern: Upside and Downside Tasuki Gap. On Pattermap we present to you the Upside formation or Bullish Tasuki Gap.

The Upside Tasuki Gap suggests a continuation of the bullish trend. Its third candlestick pattern indicates a very brief pause in the uptrend, in other words, the sellers are trying to decrease the price but they cannot close the gap between the open prices of the first and second candlesticks. The inability to close the gap indicates that the uptrend will continue.

The bearish variation is the Downside Tasuki Gap, its exact opposite. If the Downside pattern appears in a downtrend and predicts the continuation of the trend, the Upside predicts the same continuation, but of the uptrend. The formation structure is the same, but the colors are different.

Construction

1st

• continuation of uptrend
• long green body

2nd

• green body
• opens with gap above 1st candlestick close price^①

3rd

• red body
• opening price within 2nd candlestick body^②
• closing price above 1st candlestick closing price (within gap between 1st and 2nd candlesticks)^③

If the third candlestick closes below the gap between 1st and 2nd candlesticks, it means that the pattern has been broken and the bullish continuation may be at risk.

Stop Loss should be placed below the lowest price of the 1st candlestick.