Downside Tasuki Gap |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bearish
Prior Trend of Candlesticks: Bearish
Reliability of Candlesticks : Recommended
Confirmation of Candlesticks: Reliable
Candlestick Patterns Key Reference |
DESCRIPTION
Downside Tasuki Gap pattern is a three candlestick formation.
Downside Tasuki Gap pattern
is recognized by two long bearish candlesticks with a big downward gap between them during a downtrend.
The third bullish candlestick partially closing the gap between the first two bearish candlesticks.
The bullish candlestick may result buyers to temporarily enter long position at low buying price.
However we should expect the trend to continue in an downtrend.
PATTERN RECOGNITION
1. Downside Tasuki Gap pattern can be identified by downtrend.
2. Refering to above diagram, we will firstly see two long bearish candlesticks with a big gap between them.
3. Then we will see the third bullish candlestick with an opening price within the body of the previous bearish candlestick.
4. The body of the third bearish candlestick closes in the gap but not fully closes the gap between the previous two bearish candlesticks.
EXPLAINATION
The Downside Tasuki Gap pattern appears in a strong downtrend.
The downtrend momentum extended on the second bearish candlestick which gap below from the first bearish candlestick.
The third bullish candlestick open into the body of the previous bearish candlestick and partially fill in the gap between the first two bearish candlestick.
However notice that the gap is not fully filled or closed, hence the previous downtrend should continue.
The Continuation Patterns imply that a trend has temporary paused and will continue its original trend rather than reversal.
POINT TO NOTE
The Downside Tasuki Gap pattern is a rare formation which is similar to Downside Gap Three Methods pattern.
The only difference is that in the Downside Gap Three Methods pattern, the gap between the first two candlesticks is filled by the third bullish candlestick.
The real body of the last two candlestick should be about the same length.
A confirmation is required in a form of a bearish candlestick with a lower close or a gap down is suggested to ensure downtrend will continue.
CANDLESTICK PATTERNS KEY REFERENCE
Irrespective of Color (Can be bullish or bearish) |
Uptrend |
Consolidation |
Downtrend |
ANTICIPATED DIRECTION OF TREND
Lighter Arrow = Lower Probability
Solid Arrow = Higher Probability
More Likely to go sideway, Less likely to rally
|
More likely to rally, Less likely to go sideways
|
More likely to go sideway, Less likely to fall
|
More likely to fall, Less likely to go sideways |
