A powerful single-candle reversal signal that appears at the bottom of downtrends, showing buyers stepping in to reject lower prices.
The Upside Tasuki Gap is a bullish continuation pattern consisting of three candles. It starts with two bullish candles where the second gaps above the first, followed by a bearish candle that opens within the second candle's body and closes within the gap between the first two candles — but does not fully close the gap.
The key to this pattern is the gap that remains open. The bearish third candle represents a pullback or profit-taking attempt, but the inability to close the gap shows that bullish momentum remains dominant. The unfilled gap acts as a support zone, confirming the uptrend's strength.
The Upside Tasuki Gap reveals a trend that's too strong for profit-takers to derail. The first two bullish candles with a gap between them show aggressive buying — the gap itself is a statement of bullish conviction.
The third candle is bearish, opening within the second candle and selling off into the gap. This is the natural counter-reaction: some traders take profits, others test whether the gap will fill. It's the market probing for weakness.
But the gap doesn't fill. The third candle closes within the gap but doesn't close it, proving that buyers are defending the gap as support. An unfilled gap in an uptrend is one of the strongest continuation signals in candlestick analysis — the Tasuki Gap formalizes this principle into a tradeable pattern.
Conservative: Enter long above the second candle's high after the third candle holds the gap.
Aggressive: Enter long at the close of the third candle when it's clear the gap will hold.
Below the unfilled portion of the gap — specifically below the first candle's close. If the gap fills completely, the pattern has failed.
T1: Measured move equal to the gap distance projected from the third candle's close. T2: Next significant resistance level.
Minimum 1:1.5. The tight stop (gap level) often provides excellent risk:reward.
The Upside Tasuki Gap is a bullish continuation pattern that signals a brief pullback within an uptrend that fails to close the gap - confirming buyers remain in control. Its effectiveness depends on the strength of the existing trend and whether the gap truly holds.
Gap up followed by bearish candle that doesn't fill. Bulls maintaining control despite the pullback.
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