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Stockcharts With Rising Trend Patterns - The Upside Tasuki Gap

Stockcharts work equally well applied to individual stocks or to the major indices. Stockcharts with Rising Trends indicate whether investor sentiment in the current market is Bullish or Bearish. On individual stockcharts with rising trends, the Candlestick Signals help analysts spot the trend. Technical analysis is a skill that improves with practice. Candlestick stockcharts quickly advance the learning curve for interpreting patterns. The Candlestick Forum provides weekly newsletters with specific stockcharts of interest in the current market. We encourage you to signup for our free newsletter and join us each Thursday for our free stock chat.  These stock chat sessions, with Stephen W. Bigalow, review current market conditions and specific stockcharts showing high profit potential trades.

This article focuses on identifying the UPSIDE TASUKI GAP, a Bullish Continuation Pattern. If you are new to trading, you will also want to review the 12 Major Candlestick Signals and Secondary Candlestick Signals.

 

UPSIDE TASUKI GAP
(uwa banare tasuki)

Description

The Upside Tasuki Gap is found in a rising trend. A White candles forms after gapping up from the previous white candle, as shown in the above illustration. The next day opens lower and closes lower than the previous day. If the gap is not filled, the Bulls have maintained control. If the gap was filled, then the bullish momentum has come to an end. If the gap is not filled, it is time to go long. The definition of a Tasuki is a 'sash that holds up one's sleeve.'

Criteria

  1. An uptrend is in progress. A gap occurs between two candles of the same color.
  2. The color of the first tow candles is the same as the prevailing trend.
  3. The third day, an opposite color candlestick opens within the previous candle and closes below the previous open.
  4. The third day close does not fill the gap between the two white candles.
  5. The last two candles, opposite colors, are usually about the same in size.

Pattern Psychology

Explaining the Tasuki Gap is simple. The Japanese place significance on gaps. When one appears in the middle of the trend and is not able to fill itself on weakness the next day, the strength is still in the uptrend. The pullback day is now construed as being a profit-taking day.

Back to Continuation Patterns

 

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