Downward Gap Tasuki


 

In the downtrend, price opens lower and forms the bearish session.

The high price of the candle is lower than the low price of the previous candle, hence there is a falling window in the downtrend. In the next candle, price gaps up and opens higher than the previous closing price. The opening price of the candle is within the body (Below the opening price and above the closing price) of its previous bearish candle. It turns out to be a bullish candlestick pattern which closes higher than the previous candle body. The price action is bullish. This formation is known as a Downward Gap Tasuki Pattern, it is a bearish pattern!

The falling window in downtrend is a major reason why this pattern is bearish. The bearish candlestick pattern with falling window is followed by a bullish candlestick pattern which opens within the body of the previous candle and closes above it but the falling window remains intact. It is a pullback pattern that provides opportunity to participate in the downtrend.

This price pattern is bearish unless falling window gets closed and price sustains above it. The body of last two candles of the pattern should be similar in size.

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This pattern can be plotted on the chart by adding it from the study menu in TradePoint & RZone. The pattern is also available in the system builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

 

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