Upside Tasuki Gap |
Characteristic of Candlesticks: Reversal
Relevance of Candlesticks: Bullish
Prior Trend of Candlesticks: Bearish
Reliability of Candlesticks : Recommended
Confirmation of Candlesticks: Reliable
Candlestick Patterns Key Reference |
DESCRIPTION
Upside Tasuki Gap pattern is identified by two long bullish candlesticks with a gap upward between them during an uptrend.
The third bearish candlestick partially closes the gap between the previous two bullish candlesticks.
A support for an uptrend may be forming which caused by temporary profit taking.
We expect the upward trend to continue following by the direction of the upward gap.
PATTERN RECOGNITION
1. Upside Tasuki Gap pattern can be identified by an uptrend.
2. Refering to above diagram, we will see two long bullish candestick with a gap between them.
3. Then we will see a third bearish candlestick which open within the previous candlestick's body.
4. The third bearish candlestick closes into the gap not fully close of previous two bullish candlesticks.
EXPLAINATION
In the Upside Tasuki Gap pattern, market is in a strong bullish momentum.
The bullish move goes on further by the second bullish candlestick that gaps in the direction of an uptrend.
However notice that the third bearish candlestick opens well into the body of the second bullish candlestick which partially fills up the gap.
The third bearish candlestick is called the correction day which does not completely fill up the gap of previous two candlestick, so the uptrend should continue. When this happen, buyers are temporary taking profit. Since the gap is not completely filled or closed, the previous upward trend must continue.
The Continuation Patterns imply that a trend has temporary paused and will continue its original trend rather than reversal.
POINT TO NOTE
The Upside Tasuki Gap is a rare formation pattern and it is similar to the Upside Gap Three Methods pattern.
The real body of the first two bullish candlesticks are about the same size.
The only difference is that in the Upside Gap Three Methods pattern, the gap betwen the first two days is filled in the third candlesticks.
A confirmation is recommended by the fourth bullish candlestick with a large gap up or higher close.
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 |
