Downside Tasuki Gap Bearish Continuation Pattern
Updated on March 9, 2023
The Downside Tasuki Gap is a bearish continuation pattern in technical analysis. It occurs when there is a downward gap between two candles on a price chart, indicating that the bears are in control of the market and the price is likely to continue to decline.
How is the downside Tasuki gap bearish continuation pattern formed?
The Downside Tasuki Gap bearish continuation pattern is formed when there is a gap in price between two candles on a price chart. The gap is created when the current period’s low price is lower than the previous period’s high price.
In the pattern, the first candle represents the bears taking control and pushing the price downward, while the second candle confirms the bearish momentum by closing lower than the first candle and filling the gap created by the downward price movement. The third candle after the pattern should be a white or a green candle, ie., of opposing colour to the second candle. This candle should open inside the red candle’s real body and close above it and should not close the gap between the first two candles.