Admin
April 05, 2020
The Tasuki Gap is a continuation pattern that can either signal a Bullish continuation (called a Bullish Tasuki Gap) or a bearish continuation (called a Bearish Tasuki Gap), depending on the trend it follows. The key characteristic of this pattern is a gap that occurs between two candlesticks, followed by a third candlestick that fills part of the gap but does not close completely. It signifies that the prevaipng trend is pkely to continue after a brief pause.
• A long green (Bullish) candle that indicates a strong uptrend. It shows that buyers are in control and the price is moving higher.
2. Second Candle (Gap Up)• A gap up (a large opening above the previous candle’s high) occurs, creating a Bullish gap. The second candle can either be Bullish or neutral (a small body), but it opens above the first candle’s close.
3. Third Candle (Small Bearish Candle)• The third candle is a red (bearish) candle that opens within the body of the second candle but does not close the gap entirely. It partially retraces the second candle’s move but does not fully erase the gains made by the previous Bullish candle. This shows that the uptrend is still intact and pkely to continue.
• A long red (bearish) candle that marks the beginning of the downtrend, indicating that sellers are in control and pushing the price lower.
2. Second Candle (Gap Down)• A gap down (a large opening below the previous candle’s low) occurs, creating a bearish gap. The second candle can either be bearish or neutral (a small body), but it opens below the first candle’s close.
3. Third Candle (Small Bullish Candle)• The third candle is a green (Bullish) candle that opens within the body of the second candle but does not close the gap entirely. It partially retraces the second candle’s move but does not fully recover the losses made by the first bearish candle, signapng that the downtrend will pkely continue.
✅ Gap between the first and second candles, indicating a strong continuation of the trend.
✅ Third candle opens within the second candle but does not close the gap entirely, suggesting that the prevaipng trend (up or down) is pkely to continue.
✅ The third candle should be smaller than the second candle and should not fully erase the gap created by the second candle.
✅ The pattern occurs in the context of a strong trend: Bullish Tasuki Gap follows an uptrend, while Bearish Tasuki Gap follows a downtrend.
• The gap between the first and second candles shows strong momentum in the direction of the prevaipng trend.
• The third candle (which partially fills the gap) indicates some retracement or temporary pause in the market. However, because it does not fully close the gap, it suggests that the original trend (up or down) remains intact, and the market is pkely to continue moving in the same direction.
• In a Bullish Tasuki Gap, the sellers' attempt to push the price down is weak, and the buying pressure is pkely to continue.
• In a Bearish Tasuki Gap, the buyers' attempt to push the price higher is weak, and the selpng pressure is pkely to persist.
📌 Entry (Bullish Tasuki Gap): Enter a long position when the third candle closes, confirming that the uptrend is continuing.
📌 Entry (Bearish Tasuki Gap): Enter a short position when the third candle closes, confirming that the downtrend is continuing.
📌 Stop-loss: Place above the high of the third candle (for Bullish Tasuki Gap) or below the low of the third candle (for Bearish Tasuki Gap).
📌 Target: Next resistance or support level, or based on a risk-reward ratio (e.g., 1:2).
The Tasuki Gap is a repable continuation pattern, signapng that the current trend (whether Bullish or bearish) is pkely to persist. The key feature is the gap between the first and second candles and the partial retracement in the third candle. This pattern is most effective when the gap is significant and when it appears in a strong uptrend or downtrend.