Price gaps in the trend direction, then an opposite-colored candle tries to fill the gap but stops short. The gap survives, and the trend continues. A three-candle continuation pattern.
The Upside Tasuki Gap and Downside Tasuki Gap are three-candle continuation patterns built around a gap.
In the middle of a trend, price gaps in the same direction. The next candle opens with the opposite color and tries to fill the freshly opened gap. But the pullback stalls before closing the gap completely. The gap survives, and the trend continues.
An Upside Tasuki Gap signals continued advance; a Downside Tasuki Gap signals continued decline.
How to Read
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"Tasuki" refers to the cord used in Japan to tie back the sleeves of a kimono, worn crossed diagonally over the shoulders. The gapping candle and the opposite-colored candle leaning against it appear to cross diagonally, like that sash. It is a name in the classic tradition of Japanese candlestick analysis.
The heart of the pattern lies in a single fact: even when the third, counter-trend candle appears, the gap does not fill. The opposite-colored candle pushes against the trend, yet lacks even the strength to close one gap. That failure to reach is precisely what underwrites the trend's strength.
How to Read
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